CCF Acquisition

HSBC Hldgs PLC
22 February 2001


The following is a translation of an announcement issued in
Paris today by the French Finance Ministry:

         
         FRENCH STATE DISPOSAL OF BANQUE HERVET
         
Acting in accordance with the procedure specified, and pursuant
to the opinion of the State Commission on Equity Holdings and
Transfers, Laurent Fabius, the French Minister of the Economy,
Finance and Industry, has selected Credit Commercial de France
to acquire Banque Hervet.

This choice follows detailed analysis of all aspects of the
four tender offers submitted on 16 February by BNP-Paribas,
Credit Commercial de France, Credit du Nord-Dexia and Groupama,
and after meeting the representatives of the personnel of the
Hervet Group.

All four final tender offers were of high quality, testifying
to the interest in Banque Hervet. CCF's plan was considered to
be the best industrially, socially and financially, and the one
most consistent with the interests of the State, the bank and
its employees.

The business plan is based on the very strong fit between
Banque Hervet and CCF, both geographically (especially in the
Central region of France), and in terms of customer bases and
areas of competence. Synergies will be promoted between the
respective corporate and personal customer banking businesses.
Banque Hervet will have access to the full range of products
and services a major banking group can provide, together with
the CCF's technical and managerial expertise and international
stature, enabling it to pursue its growth and modernisation.

Care will be taken to respect the identity of Banque Hervet as
it becomes part of a major banking group. CCF's plan was
considered most likely to safeguard Banque Hervet's autonomy,
its administrative and IT centres, by making it a key element
in its network of regional banks. Banque Hervet will be able to
draw on CCF's experience of managing its own regional banks in
a decentralised, autonomous manner.

Where labour relations are concerned, CCF has pledged to
safeguard and develop employment, especially in the Central
region of France.

The price proposed by CCF, namely EUR48 per share, representing a
total of FF3.471 billion for the totality of Banque Hervet's
capital, was the highest bid.

The choice of CCF will allow the Hervet Group to consolidate
its position within the French banking sector and pursue its
development, as part of a major banking group that has built up
a network of autonomous regional banks.

The Minister of the Economy, Finance and Industry has confirmed
that the employees of the Hervet Group will be given the
opportunity to acquire a stake in their company on the occasion
of its sale, having amply contributed to its return to
profitability and restoration of its financial strength. To
that end, 10 per cent of the capital will be reserved and sold
to them on preferential terms (including a discount and free
shares offered by the State, with a matching contribution by
the company).

In line with government policy, the social partners have been
involved at every stage of the process, and have had the
opportunity to meet with and question all of the shortlisted
candidates.

The Minister welcomes the climate of dialogue and confidence
that has presided over the disposal of the Banque Hervet, and
applauds the constructive and thorough work of the
representatives of Banque Hervet's personnel throughout the
procedure.

As the Hervet Group prepares to embark on a new phase of its
development with a new shareholder, the Minister wishes to pay
tribute to the efforts of all of the employees and managers of
the Hervet Group. Under the leadership of Patrick Careil and
Alain Cadiou, and subsequently Jean-Pierre Leclerc, they have
turned around and rebuilt a major banking network, serving and
helping to finance the fabric of the French economy. The
quality of the declared candidates and the terms they offered
bear witness to the scale of these efforts and augur well for
the future.