HSBC Re: CCF/Credit Lyonnais

HSBC Hldgs PLC
4 October 2000


The following text is the English translation of a joint news
release issued in France by CCF and Credit Lyonnais

Signature of a heads of agreement between Credit Lyonnais and CCF
                       in equipment leasing

                                                             
On  2  October  2000, Credit Lyonnais and CCF signed  a  heads  of
agreement   to   merge  their  equipment  and  financial   leasing
activities.  This agreement, which is subject to approval  by  the
relevant  regulatory bodies, will create a powerful new  group  in
equipment leasing, bringing together Slibail and Slibail  Location
on  the  one  hand and the companies of the Loxxia  group  on  the
other. This followed the signing of a letter of intent on 13 April
2000.

Loxxia had a net worth of FF508 million and total assets of FF11.9
billion at 30 June 2000.

The  partnership  will take the form of a joint venture  in  which
Credit Lyonnais and CCF will hold equal stakes. CCF has the  right
to  sell  its  stake to Credit Lyonnais within 18  months,  whilst
remaining  the new group's major commercial partner. It represents
a significant opportunity for both groups due to the excellent fit
between  Loxxia  and  Slibail in both the  leasing  and  financial
rental  markets.  This  is the result of the  special  nature  and
history  of  the two groups and is reflected in their new  leasing
business.

The  new  entity's total new business to 30 June 2000  would  have
been  FF6.3  billion,  putting it in second place  in  the  French
market. The group is estimated to have annual new business of FF12
billion.  Overall, the joint venture will have more  than  10  per
cent  of  the market for equipment and financial leasing  services
for companies and professionals.

CCF  became  a  member of the HSBC Group in July 2000.  With  some
6,000  offices  in  81 countries and territories,  and  assets  of
US$580  billion  at 30 June 2000, the HSBC group  is  one  of  the
world's largest banking and financial services organisations.