Negotiations regarding the sale of Mid Med Bank plc shares

The government of Malta is in negotiations with Midland Bank plc, a wholly-owned subsidiary of HSBC Holdings plc, for the sale of its entire holding in Mid-Med Bank plc.

The HSBC Group is one of the worlds's leading international banking and financial services organisations, with major consumer, commercial and investment banking and insurance businesses operating under long-established names in the Asia-Pacific region, Europe, the Americas, the Middle East and Africa. HSBC Group has more than 5,500 offices worldwide and over 130,000 employees in 81 countries and territories. The Group maintains one of the world's largest private data communication networks and through it operates one of the biggest proprietary global automated teller machine networks.

HSBC Holdings plc is incorporated in England, with its head office in London. It has primary listings on the London and Hong Kong stock exchanges and a sponsored American Depositary Receipt programme.

The acquisition is subject to agreement of terms and conditions, and to due diligence. It is expected to be completed by the end of May 1999.

A further announcement will be made in due course.