HSBC extends offer for Safra Republic Holdings S.A.
25 October 1999

HSBC EXTENDS PUBLIC TENDER/EXCHANGE OFFER FOR SAFRA REPUBLIC HOLDINGS S.A.
HSBC has extended to 5:00pm (Luxembourg/Swiss time) on 30 November 1999 the expiration of the offer period for its public tender/exchange offer for all issued shares of common stock, par value USD2.50 each, of Safra Republic Holdings S.A. not owned directly or indirectly by Republic New York Corporation or Safra Republic. HSBC previously had extended the offer period to 5:00pm (Luxembourg/Swiss time) on 29 October 1999. HSBC has been advised that approximately 20,784,080 shares have been tendered and not withdrawn pursuant to the Offer.

Republic has announced previously that it is investigating certain activities of the Futures Division of Republic New York Securities Corporation. In light of, among other matters, the facts uncovered by the continuing investigation and the timing and status of regulatory approvals and the Republic stockholder meeting to be held to approve the Merger, HSBC may determine, subject to the terms and conditions of the Transaction Agreement and Plan of Merger, dated as of 10 May 1999, among HSBC, Republic and Safra Republic and the Offer Prospectus dated 1 September 1999, to extend the Offer Period again on one or more occasions. As announced previously, while reserving all rights that it may have under the Transaction Agreement, HSBC continues to work with Republic and Safra Republic toward closing of the Republic merger and the Safra Republic tender/exchange offer in accordance with the Transaction Agreement.

HSBC will publish a formal notice of extension as soon as possible in accordance with the provisions of the Offer Prospectus.

By way of variation of the terms and conditions of the Offer contained in the Offer Prospectus, holders of Safra Republic common stock who tender their shares at any time prior to the expiration of the Offer (including any further extension thereof) will be permitted to withdraw their tenders, should they choose to do so. Shareholders who wish to withdraw tendered shares of Safra Republic common stock should follow the procedures set forth in the prior notice of extension published in the Luxemburger Wort on 30 September 1999 and in Le Temps and Neue Zuercher Zeitung on 29 September 1999. The withdrawal procedures were also included as Annex A to the press release issued by HSBC on 28 September 1999.

The Offer is being made to holders of Safra Republic common stock solely by means of the Offer Prospectus dated 1 September 1999 and the green Acceptance Forms (other than for United States shareholders, who should also receive the blue Supplemental Offer Document for United States Shareholders dated 1 September 1999 and the yellow Acceptance Forms for United States Shareholders). Copies of the Offer Prospectus, blue Supplemental Offer Document for United States Shareholders, green Acceptance Forms and yellow Acceptance Forms may be obtained from Republic National Bank of New York (Luxembourg) S.A., 32 boulevard Royal, L-2449 Luxembourg (Telephone: 352-47-93-31-221) or from UBS AG, Bahnhofstrasse 45, 8098 Zurich, Switzerland (Telephone: 41-1-238-11-11). United States holders of Safra Republic common stock may obtain the Offer Prospectus, the blue Supplemental Offer Document for United States Shareholders and the yellow Acceptance Forms from HSBC Bank USA, the U.S. Forwarding Agent for the Offer, at HSBC Bank USA, Issuer Services, 140 Broadway, Level A, New York, NY 10005-1180 (Telephone: 800-662-9844).