HSBC Bank USA To Consolidate 21 Metro New York Branches

Business Wire, March 1, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--March 1, 2000

HSBC Bank USA plans to consolidate 21 metropolitan New York branches as a result of the merger with Republic National Bank of New York (RNB), pending regulatory approval.

All consolidations are expected to take place between July and October 2000. The number of branch closings was previously announced in a news release on May 10, 1999.

No disruption in banking services or reduction in staff is expected. Impacted customers will receive notification letters 90 days prior to consolidation of their branch.

The consolidations are a part of HSBC Bank USA's overall retail banking branch strategy, in which all branches are reviewed on a periodic basis to determine if they are candidates for renovation, expansion or consolidation. Most of the branches slated for consolidation are located in extremely close proximity to one another. For example, as a result of the merger, HSBC Bank USA currently has branches at 188 and 200 Montague Street in Brooklyn and 1300 and 1331 North Avenue in New Rochelle.

"Because they will be staffed at higher levels, the consolidated branches will result in enhanced service levels with branches better able to handle higher customer volumes and more diverse customer needs," said F. Christopher McLaughlin, executive vice president of retail banking for HSBC.

The decision to consolidate one branch into another was based on a variety of factors including location, customer access, physical condition of the branch, and lease expiration dates. In each case, branch hours will reflect those of the branch with the more extensive hours.

Other customer service enhancements underway include the introduction of internet banking, 24-hour customer service and additional ATMs in select locations. In addition, HSBC will spend more than $1 million to renovate the consolidated branches to reflect HSBC's newly introduced state-of the-art branch design standards.

A list of branches involved in the consolidations is attached. Of the 21 branches, 17 HSBC Bank USA branches are scheduled to consolidate into former RNB branches. Three former RNB branches will consolidate into HSBC branches. One consolidation location has yet to be determined.

About HSBC Bank USA

HSBC Bank USA is a New York State banking institution with over 450 branches in New York, seven branches in Florida, three in California and two in Pennsylvania. As a result of the merger of Republic National Bank of New York with HSBC Bank USA on December 31, 1999, the organization is the third largest depository institution with the largest branch network in New York State. HSBC USA Inc., the holding company for the bank, is an indirectly-held, wholly-owned subsidiary of HSBC Holdings plc (NYSE: HBC), which is headquartered in London. With over 5,000 offices in 82 countries and territories and assets of US$569 billion at 31 December 1999, the HSBC Group is one of the world's largest banking and financial services organizations.

              METRO NYC CONSOLIDATIONS
              =========================


CLOSING BRANCH                         RECEIVING BRANCH
--------------                         ----------------

Manhattan District:
-------------------

RNB                                    HSBC
World Trade Center                     5 World Trade Center, NYC
between Liberty and Church Street
NYC

HSBC                                   RNB
17 Battery Place near Battery Park     26 Broadway at Bowling Green
NYC                                    NYC


HSBC                                   RNB
919 Third Avenue at 56th Street        950 Third Avenue
NYC                                    at 57th Street NYC

HSBC                                   RNB
1220 Madison Avenue at 88th Street     45 East 89th Street at Madison
NYC                                    Avenue, NYC

HSBC                                   RNB
1095 Sixth Avenue                      452 Fifth Avenue
at 42nd Street, NYC                    at 40th Street, NYC

HSBC                                   RNB
253 Broadway, NYC                      265 Broadway at Chambers
                                       Street NYC

HSBC                                   RNB
70 Pine Street at Pearl Street         100 Maiden Lane
NYC                                    at Pearl Street, NYC

Queens/Bronx District:
----------------------

                                       HSBC
2148 Bartow Avenue                     2014 Bartow Avenue
at Co-Op City, Bronx                   at Co-Op City, Bronx

HSBC                                   RNB
107-40 Queens Boulevard Forest Hills   107-15 Continental Avenue
Queens                                 Forest Hills between Queens
                                       Boulevard and Austin Street

                                       Queens

HSBC                                   RNB
63rd and Saunders Street, Rego Park    95-01 63rd Drive,
Queens                                 at Saunders Street
                                       Rego Park, Queens

Brooklyn/Staten Island District:
--------------------------------

HSBC                                   RNB
188 Montague Street                    200 Montague Street
at Court and Clinton Street            at Court Street
Brooklyn                               Brooklyn

HSBC                                   RNB
8515 Bay Parkway                       2301 86th Street
at 86th Street                         at 23rd Avenue
Brooklyn                               Brooklyn

Suffolk District:
-----------------

HSBC                                   RNB
100 Commack Road, Commack              5880 Jericho Turnpike and
                                       Larkfield Road, Commack

Westchester District:
---------------------

HSBC                                   RNB
1331 North Avenue and                  1300 North Avenue and
QuakerRidge Road                       QuakerRidge Road
New Rochelle                           New Rochelle


HSBC                                   RNB
24 Chase and Popham Road               34 Popham Road and Overhill
Scarsdale                              Road Scarsdale

HSBC                                   RNB
403 South Broadway at                  449 South Broadway and Redford
McLean Street, Yonkers                 Street, Yonkers



HSBC                                   RNB
313 Main Street near Mill Road         356 White Plains Road
Eastchester                            at Cypress
                                       Eastchester

Asian District:
---------------

HSBC Branch                            RNB
50 Bowery, NYC                         58 Bowery and Canal Street, NYC


HSBC                                   RNB
29 Bowery, NYC                         58 Bowery and Canal Street, NYC


RNB                                    HSBC
136-65 Roosevelt Avenue                39-10 Main Street at 39th Street
and Main Street                        Flushing
Flushing Queens                        Queens



BRANCHES TO BE CONSOLIDATED/FINAL LOCATION TO BE DETERMINED
===========================================================

Manhattan District:
------------------

RNB
120 Broadway at Cedar Street, NYC

HSBC
140 Broadway, NYC