Bangkok Metropolitan Bank

HSBC Hldgs PLC
29 December 2000



                   BANGKOK METROPOLITAN BANK

In May this year HSBC Holdings plc signed an agreement in
principle with the Financial Institutions Development Fund of
Thailand (FIDF) for HSBC to acquire a 75% interest in Bangkok
Metropolitan Bank (BMB).  Completion of the acquisition was
subject to further discussions between HSBC and FIDF on a
number of matters, and to final documentation.

As a result of those discussions HSBC and FIDF have concluded
jointly that it will not prove possible to reach final terms
acceptable to both parties.  Accordingly, they have agreed
that the negotiations will be discontinued and that the
acquisition of BMB by HSBC will not proceed.

The discussions were conducted professionally and were constructive throughout
and HSBC wishes to record its respect for the position of the Thai
authorities in relation to BMB and its gratitude to them for
the opportunity to consider the transaction.  Although
disappointed by the outcome, HSBC, which has had a presence in
Thailand since 1888, continues to view the country as one of
considerable strategic importance.  HSBC will now focus on the
organic growth of its existing business and on developing the
range of services that it provides to Thai companies and
individuals.