Announcement by Cathay Financial Holdings on behalf of CUB for the resolution made by the board of managing directors on providing additional provision.

2006-12-25

1.Date of occurrence of the event:2006/12/25 2.Company name:Cathay United Bank Ltd 3.Relationship to the Company (please enter ”head office” or ”affiliate company”):Affiliated company 4.Reciprocal shareholding ratios: Cathay United Bank is 100% owned by Cathay Financial Holdings. 5.Cause of occurrence:To maintain high-quality asset,the board of managing directors of CUB has decided to provide additional provision of NT$4BN and NT$3.3BN respectively for restructured debts and unsecured consumer loans. 6.Countermeasures:N/A 7.Any other matters that need to be specified:N/A