HSBC Implements Fair Isaac's Fraud Predictor Solution to Enhance Fraud Detection and Cut Losses; Innovative Solution Gives Card Issuers Worldwide Unrivaled Capabilities for Protecting Cardholders

Fraud Predictor is built upon Fair Isaac's Falcon(TM) FraudManager, the fraud detection solution used to protect more than 450million active payment card accounts worldwide. It is the onlysolution available that leverages data from both merchants andcardholders to provide more precise fraud predictions. By integratingthe predictive power of merchant data with the proven analytics ofFalcon Fraud Manager, HSBC can achieve an incremental boost in frauddetection and prevention over the performance of the traditionalFalcon score alone.

"Fair Isaac's Fraud Predictor is the ideal solution to take HSBC'sstrategic use of fraud detection technology to the next level," saidGeorge Lennox at HSBC. "The power of Fair Isaac's transaction-basedfraud solutions is market-proven worldwide. Adding Fraud Predictor toour services reflects our ongoing commitment to tapping intoinnovative technology solutions that help us limit fraud losses acrossour global network and provide our cardholders with the real-timeprotection they need in their payment card transactions."

"Card issuers worldwide have confidence in the ability of FairIsaac's unique fraud-fighting analytics because they have experiencedthe results and benefits firsthand," said Sonja Schindeler, vicepresident of Global Fraud Solutions at Fair Isaac. "HSBC'simplementation of Fraud Predictor significantly expands the reach ofour innovative fraud analytics into new markets. As the first bank inEurope to invest in Fraud Predictor, HSBC will gain significantfinancial and customer service advantages from this implementation bypromoting smart, profitable customer decisions across its diverseglobal portfolio."

Merchant profiles synthesize transaction information and fraudhistory for millions of merchants. When an authorization request isreceived, the Fraud Predictor model calculates a fraud score based onthe transaction data at the cardholder level as well as thetransaction and fraud history at the merchant level, resulting in abroader view of a transaction and a significant lift in frauddetection. Merchant profiles will be updated and provided to HSBC on aweekly basis. The system's neural network model continually uses thisrefreshed data to generate a highly accurate fraud score. Combinedwith the real-time processing and workflow management infrastructureof Falcon Fraud Manager, Fraud Predictor represents the most advancedneural network used in fraud detection today.

About HSBC Holdings plc

HSBC Holdings plc is headquartered in the UK. The HSBC Groupserves over 110 million customers worldwide from more than 9,700offices in 77 countries and territories in Europe, the Asia-Pacificregion, the Americas, the Middle East and Africa. With assets ofUS$1,467 billion at 30 June 2005, HSBC is one of the world's largestbanking and financial services organisations. HSBC is marketedworldwide as 'the world's local bank.'

About Fair Isaac

Fair Isaac Corporation (NYSE:FIC) is the preeminent provider ofcreative analytics that unlock value for people, businesses andindustries. The company's predictive modeling, decision analysis,intelligence management, decision management systems and consultingservices power billions of mission-critical customer decisions a year.Founded in 1956, Fair Isaac helps thousands of companies in over 60countries acquire customers more efficiently, increase customer value,reduce fraud and credit losses, lower operating expenses and enter newmarkets more profitably. Most leading banks and credit card issuersrely on Fair Isaac solutions, as do insurers, retailers,telecommunications providers, healthcare organizations and governmentagencies. Through the www.myFICO.com Web site, consumers use thecompany's FICO(R) scores, the standard measure of credit risk, tomanage their financial health. For more information, visitwww.fairisaac.com.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statementscontained in this press release that relate to Fair Isaac, includingstatements regarding its Fraud Predictor with Merchant Profilesproduct offering and the benefits to be derived from this offering,are forward-looking statements within the meaning of the "safe harbor"provisions of the Private Securities Litigation Reform Act of 1995.These forward-looking statements are subject to risks anduncertainties that may cause actual results to differ materially,including any unforeseen technical difficulties related to theimplementation, use and functionality of the offering, the risks thatcustomers will not perceive material benefits from the offering,failure of the product to deliver the expected results, thepossibility of errors or defects in the offering, and other risksdescribed from time to time in Fair Isaac's SEC reports, including itsAnnual Report on Form 10-K for the year ended September 30, 2004, andquarterly report on Form 10-Q for the period ended June 30, 2005.Forward-looking statements should be considered with caution. If anyof these risks or uncertainties materializes or any of theseassumptions proves incorrect, Fair Isaac's results could differmaterially from Fair Isaac's expectations in these statements. FairIsaac disclaims any intent or obligation to update theseforward-looking statements.

Fair Isaac, Falcon and FICO are trademarks or registeredtrademarks of Fair Isaac Corporation, in the United States and/or inother countries. Other product and company names herein may be thetrademarks of their respective owners.