Announced by Cathay Financial Holdings on behalf of Cathay United Bank's clain for a provisional attachment against Pacific SOGO department store.

2004-03-25

1.Name of the reporting media: Commercial Times, Economic Daily News etc. 2.Date of the report: 2004/03/25 3.Content of the report: The media reported that as a result of a breach of contract by Pacific SOGO Department Store, Cathay United Bank claimed for a provisional attachment against the Pacific SOGO Department Sotre. 4.Summary of the information provided by investors:N/A 5.Company's explanation of the reportage or provided information: The reason Cathay United Bank claimed for a provisional attachment against Pacific SOGO department store is that Pacific SOGO department store breach the contract between the parties by issuing its own SOGO membership cards. Such acts will seriously compromise the rights and privileges of existing Cathay United B- ank cobrand cardholders and further, will affect the business of Cathay Unit- ed Bank. Cathay United Bank deposited NT.one billion in collateral with the court in connection with the preservation procedure. 6.Countermeasures: Cathay United Bank will endeavor to protect the rights and interests of its cardholders and shareholders. 7.Any other matters that need to be specified: N/A