HSBC subsid inTurkey purchase

HSBC Holdings PLC
10 June 2002



                          HSBC AGREES IN PRINCIPLE TO

                                 ACQUIRE BENKAR

HSBC Bank AS of Turkey has reached an agreement in principle with Boyner Holding
A.S. to acquire its 100 per cent owned subsidiary, Benkar Tuketici Finansmani ve
Kart Hizmetleri A.S.

HSBC proposes to purchase 100 per cent of the share capital in Benkar and its
entire operations and assets, including the Advantage brand. Through its
combined instalment and loyalty card product, Advantage, Benkar is a leading
provider of consumer finance in Turkey. Benkar has over one million customer
card accounts and a network of 288 member merchants. This network enables
customers to use their Advantage card in over 5,000 retail outlets throughout
Turkey.

The acquisition is subject to a number of terms and conditions, including due
diligence and regulatory approval. A further announcement will be made upon the
completion of negotiations.

HSBC Bank AS currently operates through over 160 branches in Turkey and has over
one million retail customers, including 440,000 cardholders. Following
completion of the acquisition, it is proposed that Benkar will be integrated
into HSBC's existing local banking operations, resulting in an enhanced service
to the combined customer base.



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