Cathay FHC announces on behalf of Cathay Life and Cathay United Bank recognition of losses on holdings of CDOs

2007-12-05

1.Date of occurrence of the event:2007/12/05 2.Company name:Cathay Life and Cathay United Bank 3.Relationship to the Company (please enter ”head office” or ”affiliate company”):Affiliate company 4.Reciprocal shareholding ratios:N/A 5.Cause of occurrence:From the beginning of November, the rating agencies have downgraded sub-prime RMBS and related CDO ratings. After reviewing all related underlying asset portfolio, Cathay life and Cathay United Bank decided to recognize NT $596 mn loss and NT$2,568 mn loss respectively. 6.Countermeasures:N/A 7.Any other matters that need to be specified:N/A