Household HSBC Watch

CHARLOTTE — Belk, Inc. has entered into an agreement to sell its private label credit card business to GE Consumer Finance, the consumer lending unit of General Electric Company (NYSE: GE). As part of the transaction, Belk and GE Consumer Finance will also enter into a long-term marketing and servicing alliance with an initial term of 10 years. The transaction has been approved by both companies and is expected to close in January 2006 subject to customary regulatory review and closing conditions.

The transaction will include the Proffitt’s and McRae’s proprietary credit card business associated with Belk’s acquisition of Proffitt’s and McRae’s stores from Saks Incorporated in July 2005. Saks uses predatory lender Household International (HSBC) for their credit cards as recommended by their former CEO R. Brad Martin.