Clarification on media report of Economic Daily News (page A4) dated Nov 28, 2007

2007-11-28

1.Name of the reporting media:Economic Daily News(page A4) 2.Date of the report:2007/11/28 3.Content of the report:Rumor has it that Cathay Financial might out bid other domestic and international financial institute to acquire Jih Sun Financial Holding Company. 4.Summary of the information provided by investors:None 5.Company's explanation of the reportage or provided information:Cathay Financial Holdings clarifies that the report was based on market speculation and Cathay doesn’t release any related information. Please make your investment decision on verified information, instead of on the unfounded speculation. 6.Countermeasures:None 7.Any other matters that need to be specified:None