HSBC Partners with Temenos for International Banking Solution

25 August 2005

 Geneva, Switzerland – August 25, 2005—TEMENOS Group AG (SWX:TEMN), a provider of integrated core banking software, today announced that HSBC has selected TEMENOS as its partner to co-develop its next generation of International Core Banking software. HSBC and TEMENOS will combine their technology resources to build HSBC's new International banking platform, based on the onward development of the Java version of TEMENOS TCB Core Banking Solution. The two parties are looking forward to integrating their extensive International Banking software development experience into the joint venture. The agreement was signed in London between both parties on August 8.

With $1,467 billion in assets, HSBC is one of the World’s largest Banking and Financial Services organization serving over 110 million customers, across 77 countries. This partnership will realize the Core Banking technology component of a much broader initiative to reengineer the bank’s existing HSBC Universal Banking system currently deployed in 63 countries.

Ken Harvey, Group CIO of HSBC says: “HSBC is very selective about partnerships with external suppliers. Only those that can complement our Global reach and that are at the leading edge of software development are chosen. After an extensive review, we believe that the next generation of Core Banking Software is yet to be developed and that Temenos is well positioned to lead this market.”

Andreas Andreades, CEO of TEMENOS says, “We are delighted that HSBC has selected TEMENOS and TEMENOS COREBANKING as its preferred solution for the future. Both companies share the view that we are forming a true business partnership and look forward to working together to build the next generation of core banking software. TEMENOS COREBANKING has rapidly become the solution of choice for large banks requiring high volume core processing solutions to replace solutions based on older proprietary technologies. This relationship, based on forward development of Java TEMENOS COREBANKING will embrace the latest technologies to ensure both HSBC and TEMENOS continued, significant and profitable competitive advantage. We are proud to announce this relationship with HSBC Group.”

TEMENOS consistently ranks among the leading core banking providers, and has appeared in the top two positions of the International Banking Systems sales league table for six of the last seven years. In 2004, TEMENOS was ranked the international leader in terms of the value of new licensing deals.

-ENDS-

About Temenos
Founded in 1993, Temenos Group AG is a provider of integrated modular core banking systems to over 590 financial institutions in 110 countries worldwide. Temenos software provides banks with a single, real-time view of the client across the enterprise, enabling banks to maximize returns while streamlining costs. Whether providing 24/7 functionality to the wholesale, retail and private or universal banking sectors, partnering with central banks on core system replacement, or working with the World Bank on solutions for the emerging markets, Temenos knows banking. The company has a transparent approach to its operations and brings to bear its experience, expertise, commitment and professionalism on every project. Headquartered in Geneva, Switzerland, the company has 43 offices in 33 countries and is listed on the main segment of the SWX Swiss Exchange (TEMN). For more information please visit www.temenos.com

About HSBC Holdings plc
Serving over 110 million customers worldwide, the HSBC Group has approximately 9,800 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,466 billion at 30 June 2005, HSBC is one of the world’s largest banking and financial services organisation. HSBC is marketed worldwide as ‘the world’s local bank’.

For more information, contact:

Max Chuard
Temenos Director
Corporate Finance & IR
Member of the Executive Board
Tel: +41 (0) 22 708 1157
Email: mchuard@temenos.com

Ben Robinson
Temenos Investor Relations Manager
Tel: +44 (0) 207 290 3012
Email: brobinson@temenos.com

Bianca Morgan
Temenos PR Manager
Tel: +44 (0) 207 423 3751
Email: bmorgan@temenos.com

Chris Patmore
Team 660
Metia for TEMENOS
Tel: +44 (0) 20 3100 3596
Email: chris.patmore@metia.com