Cathay Financial Holdings on behalf of Cathay United Bank announces the procurement of core banking System of NTD752,800,000.

2006-04-10

1.Name and nature of the subject matter (e.g.land located at Sublot XX, Lot XX, North District, Taichung City): New core Banking Information System 2.Date of the occurrence of the event:2006/04/10 3.Transaction volume (e.g.XX square meters, equivalent to XX p'ing), unit price, total transaction price:Total price at NTD752,800,000. 4.Counterparty to the trade and its relationship with the company (if the trading counterpart is a natural person and is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed):IBM Taiwan Corp., not related 5.Where the counterpart to the trade is an actual related party, a public announcement shall also include the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), price of transfer and the date of acquisition:Not Available 6.Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times:Not Available 7.Anticipated loss or profit from the disposal (not applicable in cases of acquisition of assets) (where originally deferred, the status or recognition shall be stated and explained):Not Available 8.Terms of delivery or payment (including payment period and monetary amount):Payments upon deliveries 9.The manner of deciding on this transaction (such as tender invitation , price comparison, or price negotiation), the reference basis for the decision on price and the decision-making department:Price negotiation 10.Name of the professional appraisal institution and its appraisal amount:Not Available 11.Reason for any significant discrepancy with the transaction amount, and opinion of the certifying CPA:Not Available 12.Is the appraisal report price a limited price or specific price?: Not Available 13.Has an appraisal report not yet been obtained?:None 14.Reason an appraisal report has not yet been obtained:None 15.Broker and broker's fee:None 16.Concrete purpose or use of the acquisition or disposition:None 17.Do the directors have any objection to the present transaction?:None 18.Any other matters that need to be specified:None