Announced by Cathay Financial Holdings, on behalf of Cathay United Bank, acquisition of the real estate.

2007-04-26

1.Name and nature of the subject matter (e.g.land located at Sublot XX, Lot XX, North District, Taichung City):Land located at No.17-27, Sublot Wucheng, Lot Ankeng, Xindian City, Taipei County, Taiwan. 2.Date of the occurrence of the event:2007/04/26 3.Transaction volume (e.g.XX square meters, equivalent to XX p'ing), unit price, total transaction price:NT$257,610,658 for5,860.6 p'ing. (NT$ 43,956 per p'ing)(the related party accounts for NT$85,614,727) 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):The trading counterpart: There are 138 people including Gregory K.H.Wang，chairman of the Bank There are 15 people who are managers of the Bank. There are 31 people who are the staff of the Bank. The rest of 91 people are former staff who either retired or resigned from the bank. 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:Reason for the trade: To dissolve the construction contract on “Shih-Hua Hills”, and to repossess the land pursuant to mediation. The previous owner: There are 4 people including Jyun-Nan Lin. Price of transfer: NT$333,558,106／9,566.9 p'ing ( NT$34,866 per p'ing) Date of acquisition: 1996/02 6.Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times:N/A 7.Anticipated loss or profit from the disposal (not applicable in cases of acquisition of assets) (where originally deferred, the status or recognition shall be stated and explained):N/A 8.Terms of delivery or payment (including payment period and monetary amount):The two parties mediate a dispute in court, and the payment will be processed pursuant to the Mediation Certificate and paid in installments. 9.The manner of deciding on this transaction (such as tender invitation , price comparison, or price negotiation), the reference basis for the decision on price and the decision-making department:The price was approved by the board of directors and the transaction was performed pursuant to mediation. 10.Name of the professional appraisal institution and its appraisal amount:1. Top Real Estate Appraisal Co., Ltd ,2. NT$ 39,839 per p'ing 11.Reason for any significant discrepancy with the transaction amount, and opinion of the certifying CPA:N/A 12.Is the appraisal report price a limited price or specific price?:No 13.Has an appraisal report not yet been obtained?:No 14.Reason an appraisal report has not yet been obtained:N/A 15.Broker and broker's fee:N/A 16.Concrete purpose or use of the acquisition or disposition:To dissolve the construction contract on “Shih-Hua Hills”and return the payment pursuant to mediation. The acquired land will be disposed within a specified period of time. 17.Do the directors have any objection to the present transaction?:NO 18.Any other matters that need to be specified:N/A