HSBC Securities Services Acqn

HSBC Holdings PLC
10 October 2006


HSBC SECURITIES SERVICES ACQUIRES LIBERTY ERMITAGE
FUND ADMINISTRATION BUSINESS IN LUXEMBOURG

HSBC Securities Services (Luxembourg) S.A. ('HSSL'), a wholly owned subsidiary
of HSBC Bank plc, has acquired the business of Liberty Ermitage (Luxembourg)
S.A. ('LELSA'), the Luxembourg based fund administration business of Liberty
Group. Under the agreement Liberty Group Jersey Holdings Limited will be paid
over a three year period, subject to agreed thresholds and up to a maximum of €8
million.

LELSA currently employs 25 staff, administers over 20 funds and, at 31 July
2006, had assets under administration of more than US$4.5 billion.

HSSL is one of the largest administrators and custodians of alternative funds in
Luxembourg. With 15 years' experience and in excess of US$35 billion in assets
under administration as at 31 July 2006, the company offers a full range of fund
administration and custody services to alternative and traditional fund clients.

The combined business of HSSL and LELSA will reach almost US$40 billion in
assets under administration and will employ over 250 staff.

Germain Birgen, managing director and head of HSBC Securities Services in
Luxembourg, said: "We are acquiring a highly experienced team that will help us
meet the challenges of our rapidly growing business in Luxembourg. The
acquisition cements our relationship with two key clients Liberty Group and
Ermitage Group - which is one of the largest offshore alternative asset
management operations in Europe."

Mark Hucker, Chief Operating Officer of Ermitage Group in Jersey, said: "To be
successful in the fund services business requires a global presence and
state-of-the-art technology. In this environment, and given our focus on
building out our core fund management activities, we believe that the sale of
LELSA to HSBC is an excellent option for staff, our fund managers and third
party clients. This is an opportunity to strengthen the partnership Ermitage
enjoys with HSBC."

Notes to editors:

1. HSBC Securities Services
HSBC Securities Services (HSS) is a division within Global Transaction Banking,
part of the Corporate, Investment Banking and Markets business line of the HSBC
Group. HSBC Securities Services provides comprehensive global, regional and
domestic custody services as well as cash management; foreign exchange;
securities lending; corporate trusteeship; issue and paying agency services;
alternative investment funds; and trustee and depositary services. HSBC
Securities Services also provides a full range of investment administration and
performance consulting services to institutional and corporate clients
worldwide. Assets under custody for HSS are US$3.88 trillion at 30 June 2006,
making it one of the world's biggest securities services providers.

2. HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 9,500
offices in 76 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa. With assets of US$1,738 billion at 30 June
2006, HSBC is one of the world's largest banking and financial services
organisations. HSBC is marketed worldwide as 'the world's local bank'.

3. Ermitage Group
The Ermitage Group is one of the largest and fastest growing offshore
alternative asset management operations in Europe, providing investment services
for institutions, private banks and high net worth individuals. Following its
first hedge fund investment in 1984, the Group's assets under management have
grown to over US$2.6 billion, with headquarters in Jersey and operations in
London. Ermitage's comprehensive service ranges from fund of hedge funds to
managed accounts and bespoke solutions designed to meet more individual
risk-return mandates. Ermitage also provides a leading edge and award winning
private client service through its Global Wealth Management Services division. A
cornerstone of the Group's service is a strong and continuous commitment to risk
management and corporate governance.

                           




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