Scrip Dividend Alternative

HSBC Holdings PLC
29 August 2002


                               HSBC HOLDINGS PLC

                        FIRST INTERIM DIVIDEND FOR 2002

                           SCRIP DIVIDEND ALTERNATIVE

On 5 August 2002, the Directors of HSBC Holdings plc declared a first interim
dividend for 2002 of US$0.205 per ordinary share payable on 9 October 2002 to
shareholders on the Register on 23 August 2002. The dividend is payable in cash
in United States dollars, sterling or Hong Kong dollars, or a combination of
these currencies, with a scrip dividend alternative. The "Market Value" for the
issue of new shares under the scrip dividend alternative is:

                         US$11.5172 for each new share

The "Market Value" is the United States dollar equivalent of £7.505, being the
average of the middle market quotations for the ordinary shares on the London
Stock Exchange as derived from the Daily Official List for the five business
days beginning on 21 August 2002 (the day on which the shares were first quoted
ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 9 October 2002
will be converted from United States dollars at the forward exchange rates
quoted by HSBC Bank plc in London at or about 11.00 am on 1 October 2002. These
exchange rates will be announced to the London, Hong Kong, New York and Paris
stock exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about 5 September 2002, and elections must be received by the Registrars by 26
September 2002.


R G Barber
Group Company Secretary
HSBC Holdings plc



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