Household HSBC Watch

Oct. 24 2005 — HSBC North America Holdings’ Business Solutions Group, the commercial arm of the company’s Retail Services business, announced today that it has entered into a strategic alliance to acquire the consumer and commercial credit receivables of OfficeMax(R), one of the leading office supply retailers in the United States. “Our ability to provide customized business payment solutions allows our clients to focus on building their business and sales, while offering their customers flexible credit options,” said Brian Zempel, managing director of HSBC business solutions. “Our number one goal is to build a best-in-class financing program with OfficeMax.”

HSBC Retail Services is a leading issuer of private label credit cards. HSBC’s partnership with OfficeMax is one of the more than 60 active merchant relationships.

“HSBC Retail Services is the old troubled predatory lender Household International” said consumer advocates at Household - HSBC Watch. “Many troubled companies signed contracts with Household, and later HSBC, and many are out of business or declared bankruptcy. Signing with a former predator is a sign that investors and stockholders should watch the company, in this case OfficeMax. Thus we ask the question ‘is OfficeMax a troubled company’ ” said the group.