Announced by Cathay Financial Holdings, on behalf of Cathay United Bank Co., Ltd., the disposed corporate loans.

2007-05-28

1.Name and nature of the subject matter (if preferred shares, the terms and conditions of issuance shall also be indicated, e.g.dividend yield):Corporate Loans 2.Date of occurrence of the event:2007/05/28 3.Volume, unit price, and total monetary amount of the transaction: Volume: 36 corporate loans. Total amount: NTD$5,446,335,252 4.Counterpart to the trade and its relationship to the Company (if the trading counterpart is a natural person and furthermore is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed): Land Bank of Taiwan；No 5.Where the counterpart to the trade is an actual related party, a public announcement shall also be made of 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 date of acquisition:NA 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:NA 7.Matters related to the creditor's rights currently being disposed of (including types of collateral of the disposed creditor's rights; if the creditor's rights are creditor's rights toward a related person, the name of the related person and the book amount of the creditor's rights toward such related person currently being disposed of must also be announced):The disposed corporate loans are medium-term secured loans and medium-term loans, including syndicated and bilateral loans. The collaterals for syndicated loans include lands, buildings, machinery equipment, factory buildings etc. The collaterals for bilateral loans include lands and buildings. 8.Anticipated profit or loss from the disposal (not applicable in cases of acquisition of securities) (where originally deferred, the status or recognition shall be stated and explained):NA 9.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations:Terms of delivery or payment: Cathay United Bank receives NTD$4,470,000,000 in cash and Subordinate Beneficiary Certificates on the transaction day. Important stipulations: Cathay United Bank has the obligation to redeem disqualified loans. 10.The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making department:decision-making department: Corporate Banking Planning Department reference basis on price: the fairness opinion confirmed by Deloitte&Touche 11.Current cumulative volume, amount, and shareholding percentage of holdings of the security being traded (including the current trade) and status of any restriction of rights (e.g.pledges):NA 12.Current ratio of long or short term securities investment (including the current trade) to the total assets and shareholder's equity as shown in the most recent financial statement and the operating capital as shown in the most recent financial statement: 31.44%；513.76%；NA 13.Broker and broker's fee:NA 14.Concrete purpose or use of the acquisition or disposition: For carrying financial asset securitization business, acting as Originator under Financial Asset Securitization Law to entrust loan assets to trustee for issuance of Cathay United Bank 2007-1 Collateralized Loan Obligation Securitization Special Purpose Trust Beneficiary Certificates. 15.Net worth per share of company underlying securities acquired or disposed of:NA 16.Do the directors have any objection to the present transaction?:No 17.Has the CPA issued an opinion on the unreasonableness of the price of the current transaction?:No 18.Any other matters that need to be specified:NA