Metris Reports Earnings and Comments on HSBC Merger

Metris Companies Inc. today reported net income of $53.7 million for the quarter ended September 30, 2005, or earnings of $0.39 per diluted common share. This compares to net income of $61.8 million for the quarter ended September 30, 2004, or earnings of $0.48 per diluted common share.

The Company also reported net income of $113.7 million for the nine-month period ended September 30, 2005, or earnings of $0.74 per diluted common share. This compares to net income of $33.0 million for the nine-month period ended September 30, 2004, or earnings of $0.01 per diluted common share.

“Our third quarter reflects the improved operating performance we have seen over the last two years,” said Metris Chairman and Chief Executive Officer David Wesselink. “These results demonstrate the improvements in the year to date excess spread, asset quality and our cash flows, which have allowed us to eliminate all of our corporate debt and invest more heavily in new marketing programs.”

Merger Update
On August 4, 2005, the Company announced a definitive agreement for HSBC Finance Corporation to acquire Metris in an all-cash transaction. Metris will become a wholly owned subsidiary of HSBC Finance Corporation upon completion of the transaction. The acquisition is subject to certain conditions, including resolution of the potential civil injunctive action of the SEC against Metris that was disclosed by the Company on July 12, 2005, approval by the stockholders of Metris, and various regulatory consents. Metris and HSBC have made all regulatory filings required to date and continue to expect the merger will be completed in the fourth quarter.