Household Auto Finance, specializing in nonprime

auto financing, on Jan. 20 announced the launch of a new prime financing program offered through HSBC Bank USA. With this launch, Household becomes one of the few providers of full-spectrum auto financing programs in the United States.

The new program is a result of the March 2003 acquisition of Household International by HSBC Holdings plc. HSBC is one of the largest banking and financial institutions in the world.

"We can now bring our exceptional, personalized service to the full spectrum of auto financing," said Gannesh Bharadhwaj, Household Auto Finance's executive vice president for marketing and alliances. "This enhancement of services provides dealers with a one-stop source to purchase

their prime and non-prime contracts."

Under the new program, Household Auto Finance says it has created a "dedicated prime credit and funding team to support dealers with fast, efficient decision making and funding."

An innovative option available under the prime program is "send and fund," through which dealers can instantly qualify customers who meet certain criteria without having to first complete and send in full credit applications. Household said "the send and fund program allows dealers to accommodate their top customers with maximum efficiency and a minimum of paperwork."

Dealers can submit applications online to the new prime program through the HSBC button on the DealerTrack system.

This new auto finance program is currently available in Florida, New York, Colorado, Nevada and Utah, and will be implemented nationwide in a

staged rollout throughout 2004, according to Housedhold.

About Household Auto Finance

Household Auto Finance purchases consumer contracts from more than 9,000 dealers nationwide and also serves consumers directly.

Household says its financing programs, service and long-term stability have helped more than 700,000 consumers in 44 states with auto finance solutions.

About HSBC Bank USA

HSBC Bank USA has more than 400 branches in New York State, giving it the most extensive branch network in New York. The bank also has 10 branches in Florida, one in Pennsylvania, five in California, one in Washington, one in Oregon, and 15 in Panama.

HSBC Bank USA is the principal subsidiary of HSBC

USA Inc, the 13th largest U.S. bank holding company ranked by assets, and an indirectly held, wholly owned subsidiary of HSBC Holdings plc.

Headquartered in London, and with more than 9,500 offices in 79 countries and territories, the HSBC Group is one of the world's largest banking and

financial services organizations.

For more information about HSBC Bank USA and its products and services visit www.us.hsbc.com

About Household International, Inc.

Household International, Inc., based in Prospect Heights, Ill., is a wholly owned subsidiary of HSBC Holdings plc.

Household's businesses are providers of consumer loans, credit cards, auto finance and credit insurance products in the United States, United Kingdom and Canada.

In the United States, Household companies operate under the two oldest and most recognized names in consumer finance - HFC and Beneficial. Additionally, Household's businesses are some of the nation's largest issuers of private label and general-purpose credit cards, including The GM

Card® and the AFL-CIO's Union Plus® card.

For more information, visit www.household.com.