Clarification on media report of Economic Daily News (page A1) dated Dec 25, 2007

2007-12-25

1.Name of the reporting media:Economic Daily News(page A1) 2.Date of the report:2007/12/25 3.Content of the report:Rumor has it that Cathay Financial might acquire Chinfon Bank. 4.Summary of the information provided by investors:None 5.Company's explanation of the reportage or provided information:Cathay Financial Holdings clarifies that that the speculation is market rumor. 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