Announced by Cathay Financial Holdings,on behalf of Cathay Pacific Venture Capital Co., Ltd.the acquisition of units of CATHAY BOND FUND is executed.

2004-01-07

1.Name of the securities:Cathay Bond Fund 2.Trading date:2004/01/07 3.Trading volume, unit price, and total monetary amount of the transaction: 45,223,774.3000 unit,unit price:@NT$11.0893, total monetary amount of the transaction:NT$501,500,000 4.Gain (or loss) (not applicable in case of acquisition of securities):N/A 5.Relationship with the underlying company of the trade:Yes 6.Current cumulative volume, amount, and shareholding percentage of holdings of the security being traded (including the current trade) and status of any restriction of rights (e.g.pledges):N/A 7.Current ratio of long or short term securities investment (including the current trade) to the total assets and shareholder's equity as shown in the most recent financial statement and the operational capital as shown in the most recent financial statement:@(1) Current ratio of long or short term securities investment to the total assets and shareholder's equity:99.05%,99.08%(2)The operational capital amount:NT$506,979,197 8.Concrete purpose/objective of the acquisition or disposal:N/A 9.Do the directors have any objections to the present transaction?:N/A 10.Any other matters that need to be specified:N/A