Yuanta Financial Holding Co., Ltd

May 30, 2007

Announced by Fuhwa FHC, on behalf of Fuhwa Securities Co., Ltd., its acquisition of Fuhwa Securities Finance Co.'s 1st issue of 2007 unsecured corporate bonds.

Name and nature of the subject matter (if preferred shares, the terms and conditions of issuance shall also be indicated, e.g.dividend yield): 1st issue of 2007 unsecured corporate bonds of Fuhwa Securities Finance Co., Ltd.
Bond A (due in 3 years): coupon rate at 2.05%, pay in full on maturity date.
Bond B (due in 5 years): coupon rate at 2.13%, pay 50% in both the fourth and fifth year.
Date of occurrence of the event: 2007/05/30
Volume, unit price, and total monetary amount of the transaction:
Total price: NTD 1,500,000,000.
Counterpart to the trade and its relationship to the Company (if the trading counterpart is a natural person and furthermore is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed): Fuhwa Securities Finance and Fuhwa Securities are both subsidiaries of Fuhwa Financial Holding Co.,Ltd.
Where the counterpart to the trade is an actual related party, a public announcement shall also be made of 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 date of acquisition: The acquisition takes place in a preliminary market, Fuhwa Securities Co. will obtain the bonds by face value.
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: Not applicable.
Matters related to the creditor's rights currently being disposed of (including types of collateral of the disposed creditor's rights; if the creditor's rights are creditor's rights toward a related person, the name of the related person and the book amount of the creditor's rights toward such related person currently being disposed of must also be announced): Not applicable.
Anticipated profit or loss from the disposal (not applicable in cases of acquisition of securities) (where originally deferred, the status or recognition shall be stated and explained):Not applicable.
Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations: Fuhwa Securities Co. will obtain the bonds on references given by the issuer.
The manner in which the current transaction was decided, the reference basis for the decision on price, and the decision-making department:Fuhwa Securities Co. will obtain the bonds by face value after the board meeting.
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):
Amount: NTD 1,500,000,000.Rights limited: None.
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 operating capital as shown in the most recent financial statement: total assets ratio is 14.17%, shareholder's equity ratio is 37.15% and the operating capital is NT6,528,443 thousand dollars.
Broker and broker's fee: None
Concrete purpose or use of the acquisition or disposition: Acquisition.
Net worth per share of company underlying securities acquired
or disposed of:19.53
Do the directors have any objection to the present transaction?: No.
Has the CPA issued an opinion on the unreasonableness of the price
of the current transaction?: No.
Any other matters that need to be specified: None.