Update on the announcement made on January 22,2007 by Cathay Financial Holdings, on behalf of Cathay United Bank, Ltd, of a non-performing loan sale by negotiations.

2007-11-19

1.Date of occurrence of the event:2007/11/19 2.Company name:Cathay United Bank, Ltd 3.Relationship to the Company (please enter ”head office” or ”affiliate company”):Affiliated company 4.Reciprocal shareholding ratios: Cathay United Bank is 100% owned by Cathay Financial Holdings. 5.Cause of occurrence:To make an update announcement that the original counterparty to the trade, Chung Cheng Assets Management Corporation has requested to be succeeded by Shung Yuan Assets Management Corporation under the original contract terms and has been approved by the original decision making department. 6.Countermeasures:important information announcement. 7.Any other matters that need to be specified:N/A