On behalf of our subsidiary Cathay Securities Corp., we announce the change of directors and supervisors

2007-06-15

1.Date of occurrence of the change:2007/07/03 2.Name and resume of the replaced person: Director/David P. Sun/Chairman of Cathay Securities Corp. Director/Tsu-Jien Cheng/Senior Vice President of Cathay Securities Corp. Director/Jinn-Shing Leou/Former Chief Auditor of Cathay Financial Holdings Director/Jen-Ho Chang/Vice President of Cathay Capital Management Director/Thomas Liu/Manager of Cathay Financial Holdings Supervisor/Wan-Chie Ma/Former President of Cathay Century Insurance Supervisor/Shao-Chou Huang/Assistant Vice President of Cathay Financial Holdings 3.Name and resume of the replacement: Director/David P. Sun/Chairman of Cathay Securities Corp. Independent Director/Hong Min-Houng/Chairman of Panasonic Taiwan Co., Ltd. Independent Director/Andrew Ming-Jian Kuo/Director of H&Q Asia Pacific (HK) Limited Director/Tsu-Jien Cheng/Senior Vice President of Cathay Securities Corp. Director/David Wang/Vice President of Cathay Securities Corp. Director/Jinn-Shing Leou/Former Chief Auditor of Cathay Financial Holdings Director/Sally Li/Senior Vice Pesident & General Manager of Cathay United Bank Supervisor/Wan-Chie Ma/Former President of Cathay Century Insurance Supervisor/Shao-Chou Huang/Assistant Vice President of Cathay Financial Holdings 4.Reason for the change:appointment of new directors and supervisors by Cathay Financial Holdings 5.Number of shares held by the new director at the time of appointment: 370,000,000 shares 6.Original term (from __________ to __________):2004/04/23~2007/04/22 7.Effective date of the new appointment:2007/07/03 8.Rate of turnover of directors/supervisors of the same term:N/A 9.Rate of turnover of directors of the same term:N/A 10.Any other matters that need to be specified:N/A