Announced by Cathay Financial Holdings on behalf of Cathay United Bank, disposal of the real estate.

2008-01-31

1.Name and nature of the subject matter (e.g.land located at Sublot XX, Lot XX, North District, Taichung City):Land located at No.42-12, 42-13, 42-17, 42-18 and 42-19,Lot Kuo-chai, Linkou Township, Taipei County, Taiwan. 2.Date of the occurrence of the event:2008/01/31 3.Transaction volume (e.g.XX square meters, equivalent to XX p'ing), unit price, total transaction price:Land：6,823 square meters, equivalent to 2,063.96 p'ing ;Unit price：NT$ 153,500 per p'ing ; Total transaction price: NT$316,820,000 4.Counterparty to the trade and its relationship with the company (if the trading counterpart is a natural person and is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed):The trading counterpart is a natural person and is not an actual related party of the Bank. 5.Where the counterpart to the trade is an actual related party, a public announcement shall also include the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), price of transfer and the date of acquisition:N/A 6.Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times:N/A 7.Anticipated loss or profit from the disposal (not applicable in cases of acquisition of assets) (where originally deferred, the status or recognition shall be stated and explained):Anticipated profit from the disposal：NT$6,313,131 8.Terms of delivery or payment (including payment period and monetary amount):(1) Contract signing payment: NT$ 60,000,000 (2) Registration of ownership transferring: NT$ 34,820,000 (3) Hand over of real property: Remaining amount NT$ 222,000,000 to be paid by a loan 9.The manner of deciding on this transaction (such as tender invitation , price comparison, or price negotiation), the reference basis for the decision on price and the decision-making department:(1) Cathay Century Realty Co., Ltd. would be commended with the task of selling lands. (2) Refer to the appraisal of real estate appraisal company (3) Board of directors 10.Name of the professional appraisal institution and its appraisal amount:Professional appraisal institution：Top Real Estate Appraisal Co., Ltd. Appraisal amount：NT$ 297,105,000 11.Reason for any significant discrepancy with the transaction amount, and opinion of the certifying CPA:N/A 12.Is the appraisal report price a limited price or specific price?:No 13.Has an appraisal report not yet been obtained?:No 14.Reason an appraisal report has not yet been obtained:N/A 15.Broker and broker's fee:Broker：Cathay Century Realty Co., Ltd. Broker's fee：NT$3,168,200 16.Concrete purpose or use of the acquisition or disposition:For the disposition of unused assets 17.Do the directors have any objection to the present transaction?:No 18.Any other matters that need to be specified:None