Announce by Cathay Financial Holdings on behalf of clarify an article in United Daily,Commercial Times, Apple Daily about Cathay United Bank.

2006-04-03

1.Name of the reporting media:United Daily,Commercial Times,Apple Daily 2.Date of the report:2006/04/01 3.Content of the report:SOGO card case Cathay United wins 4.Summary of the information provided by investors:N/A 5.Company's explanation of the reportage or provided information:(1)The Bank sued Pacific SOGO Department Stores Co.,Ltd.for violating the agreement and supplemental agreement,and was granted a favorable judgment by Taipei District Court as follows:The issue of Ji Li Card by the company scheduled for 2004.01.01 is to be banned.The company may issue cards offering exchange of gifts,purchase discounts etc.in the future, but the conditions may not be superior to those of the SOGO co-branded card. (2)No adverse impact is caused to the rights and interests of the Bank's clients and no material impact caused to those of the shareholders currently. 6.Countermeasures:N/A 7.Any other matters that need to be specified:N/A