to announce the establishment of two subsidiaries,CathayII Venture Capital Inc. and Cathay Securities Corporateion.

2004-04-23

1.Date of occurrence of the event:2004/04/23 2.Name of the subsidiary: Cathay II Venture Capital Inc.(established on April 12, 2004) and Cathay Securities Corporateion.(established on April 23, 2004). 3.Principal business items of the subsidiaries: Cathay II Venture Capital Inc.:Venture Capital Cathay Securities Corporation: securities firm, futures commission merchants and futures trading assistant. 4.The parent company's numbers of shares held, monetary amounts of investments, and shareholding ratios in the respective subsidiaries, and status of restrictions on rights: Cathay II Venture Capital Inc.:60,000,000 shrares、NT.$600,000,000、100%、none Cathay Securities Corporation:350,000,000 shares、 NT.$3,500,000,000、100%、none 5.Up to the date of occurrence of the event, the current ratio of long or short term securities I investment (including the current trade) of the parent company to the total assets and shareholder's equity as shown in its most recent financial statement :98.39%、197.77% 6.Operational capital as shown in the most recent financial statement: NT.$8,490,198,000 7.Concrete purpose/objective of investment in the subsidiaries:long-term investment. 8.Any other matters that need to be specified:none