HSBC Bank USA to Buy Chase Panama BankBusiness.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 2, 2000

Agreement has been reached between HSBC Bank USA and The Chase Manhattan Bank to acquire Chase's branch operations in Panama.

HSBC Bank USA intends to acquire the full-service, stand-alone bank business, which

includes retail and wholesale capabilities. The acquisition includes 11 full-service branches located as follows: seven branches in Panama City, two branches in Colon City, one branch in David and one branch in Chitre. At 31 December 1999, Chase's Panama branch operations had approximately US$752 million in assets and US$27 million in net book value.

HSBC has had a presence in Panama since 1972 and currently operates as a full-service branch of HSBC Bank plc, with a strong franchise in corporate business as well as five retail branches. At 31 December 1999, HSBC Panama had total assets of US$477 million. HSBC expects to file applications with regulatory authorities to transfer ownership of its existing Panama business from HSBC Bank plc to HSBC Bank USA. Upon closing, all Chase employees will become employees of HSBC Bank USA.

"We are committed to the Panama business, both retail and commercial. These two organisations are a perfect complement to one another," said Youssef Nasr, President and CEO of HSBC Bank USA.

"The sale of these branches in Panama, which primarily serve individual retail customers, is consistent with Chase's strategic focus on providing financial products and services to institutional, sovereign and high net-worth private clients in the region," said Brian O'Neill, Chairman of Chase in Latin America.

The acquisition, which is subject to certain conditions including regulatory approvals in the U.S. and Panama, is expected to be completed during the third quarter of 2000. The combined entity will become the largest commercial lender in Panama and the Colon Free Zone.

Notes to editors

HSBC in the US

HSBC Bank USA is a New York State banking institution with over 450 branches in New York, seven branches in Florida and two in Pennsylvania. Fellow HSBC Group subsidiary, Republic Bank California NA, has three branches in California. As a result of the merger of Republic National Bank of New York with HSBC Bank USA on 31 December 1999, the organisation is the third largest depository institution with the largest branch network in New York State.

HSBC Holdings plc

HSBC USA Inc., the holding company for HSBC Bank USA, is an indirectly-held, wholly-owned subsidiary of HSBC Holdings plc (NYSE:HBC), which is headquartered in London. With over 5,000 offices in 80 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 organisations.

The Chase Manhattan Corporation

The Chase Manhattan Corporation is a premier global financial services firm with assets in excess of $390 billion. Chase combines the best of commercial and investment banking, offers world-class information and transaction processing services, and has a leading U.S. consumer franchise that serves 32 million customers. Through its newly formed business unit, Chase.com, Chase is successfully creating innovative business models for the new economy. Chase with offices in more than 45 countries, has a presence in all of the principal financial centers around the world. Chase can be reached on the web at www.chase.com.