Announced by Cathay Financial Holdings on behalf of Cathay United Bank to the event of Ya Hsin Industrial Co., LTD.

2007-05-29

1.Date of occurrence of the event:2007/05/29 2.Company name:Cathay United Bank 3.Relationship to the Company (please enter ”head office” or ”affiliate company”):Affiliate company 4.Reciprocal shareholding ratios: Cathay United Bank is 100% owned by Cathay Financial Holdings. 5.Cause of occurrence: The peak of credit facilities provided to YaHsin Industrial co. was in 2005,including two syndicated loans of NT$200,000,000 and US$5,500,000,as well as short-term loans of credit of US$10,000,000 . Due to risk considerations, the exposures reduced thereafter. The current outstanding is US$1,631,413.75.The exposure may not result in significant impact to the bank's profitability and financial status. 6.Countermeasures:N/A 7.Any other matters that need to be specified:N/A