Announced by Cathay Financial Holdings,on behalf of Cathay United Bank Co.,Ltd.,the promulgation of merger and increased capital record date .

2007-01-02

1.Date of the board of directors resolution:2007/01/02 2.Source of capital increase funds:LUCKY BANK. 3.Number of shares issued:New issue 226,889,520 shares 4.Par value per share:NT$10 par value 5.Total monetary amount of the issue:NT$2,268,895,200. 6.Issue price:N/A 7.Number of shares subscribed by or allotted to employees:N/A 8.Number of shares publicly sold:N/A 9.Ratio of shares subscribed by or allotted as stock dividends to existing shareholders:N/A 10.Method of handling fractional shares and shares unsubscribed by the deadline:The shareholding less than 1 nominal share of the extinguished company will be paid by cash on a pro rata basis. 11.Rights and obligations of the newly issued shares:The shares hereby issued are entitled to the same rights and obligations of the survived company's originals.All outstanding shares of the extinguished company will be cancelled at the same time of conversion. 12.Utilization of the funds from the capital increase:Merger of subsidiaries 13.Any other matters that need to be specified: (1)Name of the Company：Cathay United Bank Co.,Ltd. (2)Business Scope：Commercial Banking. (3)Total monetary amount of issued shares and par value per share：Before merger,CUB's capital was NT$46,420,518,160 with par value of NT$10 per share.According to the merger,new issuance of 226,889,520 shares amounted to NT$2,268,895,200. As a result, the capital will increase to NT$48,689,413,360 or 4,868,941,336 shares. (4)Company address：No.7 Song- Ren Road,Taipei. (5)Duration of directors and supervisors：11 directors、3 supervisors,until 2007/06/02. (6)Modification date of Company Terms：2006/08/25 (7)No. of branches after the merger：139 branches. (8)Approval documents：Letter no. SFB (1) 0950150920 promulgated by the Securities & Futures Bureau of Financial Supervisory Commission on 2006/11/15 and effective on 2006/11/14. (9)Merger and increased capital record date：2007/01/01 (10)Period of shares stop transfer：Form 2006/12/28 to 2007/01/01. (11)Notice：Posted on the web site, http://mops.tse.com.tw (12)Please refer to the website,http://mops.tse.com.tw, for more details of financial statements of CUB in the past three years, audited by the Ernst & Young (Reliability of financial statements is on the responsibility of the Company and auditors,according to relative laws and regulations.)