Cathay Financial Holdings, on behalf of Cathay United Bank, Ltd, announce that purchase and assume the collateral from judicial sale .

2006-06-21

1.Name and nature of the subject matter (e.g.land located at Sublot XX, Lot XX, North District, Taichung City): F7-F9, NO.33, Lane 221, Gangcian Rd. Neihu District ,Taipei (including 27 parking spaces from B1 to B2) 2.Date of the occurrence of the event: 2006/06/21 3.Transaction volume (e.g.XX square meters, equivalent to XX p'ing), unit price, total transaction price: total monetary amount of the transaction ：Around NT$0.3145 Billion 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): Not Applicable 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 Applicable 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 Applicable 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 Applicable 8.Terms of delivery or payment (including payment period and monetary amount): Not Applicable 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: (1) Not Applicable (2) Board of Managing Directors 10.Name of the professional appraisal institution and its appraisal amount: Not Applicable 11.Reason for any significant discrepancy with the transaction amount, and opinion of the certifying CPA: Not Applicable 12.Is the appraisal report price a limited price or specific price?: Not Applicable 13.Has an appraisal report not yet been obtained?: Not Applicable 14.Reason an appraisal report has not yet been obtained: Not Applicable 15.Broker and broker's fee: Not Applicable 16.Concrete purpose or use of the acquisition or disposition: Plan to be the office. 17.Do the directors have any objection to the present transaction?: Not Applicable 18.Any other matters that need to be specified: Not Applicable