Announce by Cathay Financial Holdings on behalf of Announce by Cathay Financial Holdings on behalf of DailY etc. about Cathay United Bank.

2006-10-13

1.Name of the reporting media:United Daily News, China Times, Apple Daily, Economic Daily News, and Liberty Times 2.Date of the report:2006/10/13 3.Content of the report:SOGO Co-brander card case - The court orders SOGO pay Cathay United Bank NT$400,000,000 as damages. 4.Summary of the information provided by investors:N/A 5.Company's explanation of the reportage or provided information: 1.Cathay United Bank initiated the litigation against Pacific SOGO Department Store, alleging its breach of contract by failing to provide benefits on the purchases by cardholders.Taipei District Court, Taiwan issued a judgment favoring Cathay United Bank, ordering SOGO Department Store pay the punitive damages of NT$400,000,000. 2.As of the judgment, there has been no adverse impact on our customers or material effect on shareholders’equity. 6.Countermeasures:N/A 7.Any other matters that need to be specified:N/A