Clarification on media report of United Daily Evening News(page17) dated July 18, 2007

2007-07-19

1.Name of the reporting media:United Daily Evening News(page17) 2.Date of the report:2007/07/18 3.Content of the report:Rumor has it that Cathay Financial Holdings will merge with Taiwan Cooperative Bank. 4.Summary of the information provided by investors:N/A 5.Company's explanation of the reportage or provided information: Cathay Financial Holdings clarifies that it is not true of the news that Cathay Financial Holdings is going to acquire Taiwan Cooperative Bank. Please make your investment decision on verified information. 6.Countermeasures:N/A 7.Any other matters that need to be specified:N/A