SKFH's supplementary information on investment in SKL

Company code:2888
No:1
Subject:SKFH announces supplementary information on 
relevant conditions of the NT$5 billion investment 
in SKL common shares
To which item it meets--article 2 paragraph xx:24
Date of events:2010/12/21
Contents:
1.Name and nature of the subject matter (if preferred shares,the terms and 
  conditions of issuance shall also be indicated,e.g.dividend yield):
  SKL common shares
2.Date of occurrence of the event:2010/12/21
3.Volume, unit price, and total monetary amount of the transaction:
  (1) Total amount: NT$5,000,000,000
  (2) Unit price: NT$22.5 per share (supplementary)
  (3) Volume: 222,222,222 common shares (supplementary)
4.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):
  (1) Counterpart: Shin Kong Life Insurance Co., Ltd.
  (2) Relationship to the Company: SKFH's 100% owned (common shares) subsidiary
5.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:
  (1) The reason for choosing the related party as trading counterpart: 
  According to the legislative spirit of Article 36 of the Financial Holding 
  Company Act, a financial holding company shall ensure the sound  
  management of the businesses of its subsidiaries. This investment is to 
  enhance SKL's financial structure and capital adequacy.
  (2) The previous owner, price of transfer, and date of acquisition: N/A
6.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:N/A
7.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):N/A
8.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):N/A
9.Terms of delivery or payment (including payment period and monetary 
  amount), restrictive covenants in the contract, and other important 
  stipulations:
  One-time payment in cash on the payment date
10.The manner in which the current transaction was decided, the reference 
   basis for the decision on price, and the decision-making department:
  (1) Reference basis for the decision on price: The unit price will be 
  based on SKL's adjusted embedded value per share, which is based on SKL's 
  most recently published embedded value per share and takes into 
  consideration net worth in the financial statements most recently audited 
  or reviewed by CPAs. However, the price shall not be lower than the net
  worth per share or face value per share in the financial statements most
  recently audited or reviewed by CPAs.
  (2) Manner in which the current transaction was decided and the 
  decision-making department: The Board of Directors
11.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):
   Preferred shares: 470,000,000 shares of preferred shares amounting to 
   NT$4,700,000,000.
   Common shares: 5,455,464,541 shares of common shares amounting to 
   NT$54,554,645,410. (supplementary)
   Shareholding percentage: 74% for preferred shares; 100% for common shares
   Restriction of rights: None
12.Current ratio of private placement of securities (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:
   Current ratio of long or short term securities investment to total assets:
   96% (supplementary)
   Current ratio of long or short term securities investment to shareholders'
   equity: 118% (supplementary)
   Operating capital in the most recent financial statement: NT$3,354,842,267
   (supplementary)
13.Concrete purpose or use of the acquisition or disposition:
   To enhance SKL's financial structure and capital adequacy
14.The discrepancy between the reference price of private placement and the 
   transaction amount per share is 20 percent or more of the transaction  
   amount:N/A
15.Net worth per share of company underlying securities acquired or disposed 
   of:NT$12.44
16.Do the directors have any objection to the present transaction?:None

SHIN KONG FINANCIAL HOLDING CO LTD (REG S)