The announcement of ex-rights date, 2006/8/14, of issuing new shares for capital as stock dividends of year 2006.

2006-07-06

1.Date of occurrence of the event:2006/07/06 2.Name of the company:Cathay Financial Holdings Co.,Ltd.. 3.Relationship to the company (listed company or affiliated company):listed company 4.The shareholding ratios of mutual holding:None 5.Cause of occurrence:Received approval on setting ex-rights date of issuing new shares as stock dividend from FSB, FSC. 6.Countermeasures:None 7.Any other matters that need to be specified: (1) The shareholder meeting has passed the proposal of issuing new shares for capital as stock dividends from retained earnings. NT$4,263,443,230 stock dividend will be issued as 426,344,323 new shares( distributing 50 shares per 1000 shares). (2)Aug 14, 2006 is the Record Date of ex-rights. The transfer of stock is suspended from Aug. 10,2006 to Aug. 14, 2006. (3) According to Article 28-2 of the Securities Law, the total dividend shall be distributed to the actual entitled shares subject to the change due to buyback, transfer, exchange, cancellation, or exercise of GDR or ECB ,or otherreasons distribute the new stock between the date of the resolution & the record dates of ex-dividend and the dividend per share shall be adjusted accordingly. The chairman is authorized to determine the Record Date of ex-dividend and the allocation ratio. (4) According to related regulations, from July 2006 the issuance of new shares should be delivered by book-entry transfer without printing physical securities. If shareholders do not have central depository accounts, please establish one from securities firms.