Cathay Fin (s) Regulatory News (CFHS)

Company code: 2882

No: 1

Subject: To announce the Board's resolution of issuing common shares through

public offering

Date of events: 2013/05/24

Contents:

1. Date of the board of directors resolution:2013/05/24

2. Source of capital increase funds: Issuance of new common shares

3. Number of shares issued: No more than 400,000,000 shares

4. Par value per share: NT$ 10

5. Total monetary amount of the issue: The total amount will be decided on basis of the issue price and the number of shares issued

6. Issue price: The actual price will be set after FSC's approval and the Board will authorize the Chairman to deal the actual price in accordance with stipulations in Article 6 of " Self-regulation Measures for Underwriters Providing Guidance to Companies in Raising and Issuing Marketable Securuties" of the Taiwan Securities Association

7. Number of shares subscribed by or allotted to employees: Reserve 10% of the total number of new shares for employees' subscription

8. Number of shares publicly sold:10% of the total number of new shares for public subscription

9. Ratio of shares subscribed by or allotted as stock dividends to existing shareholders: 80% of the total number of new shares for existing shareholders according to their respective holding as stated in shareholders' register book on the record date

10. Method of handling fractional shares and shares unsubscribed by the deadline:

The Chairman will be authorized to allocate fractional shares or shares relinquished by existing shareholders and employees to specific counterparties

at the issue price

11. Rights and obligations of the newly issued shares: Same as existing common shares

12. Utilization of the funds from the capital increase: Injecting additional capital

into subsidiaries, improving on capital adequacy and working capital

13. Any other matters that need to be specified : (1) Under certain circumstances,

the Chairman and/ or the designate person is authorized to decide and approve

any amendment to the content of application from FSC, including issuing terms,

tentative price, usage of proceeds, planned schedule and expected benefits (2)

Other terms such as record date, payment date, and capital injection date will

be authorized the Chairman to decide and approve after approved by FSC