UCBH HOLLDINGS

The Bank concentrates on marketing its services in the San Francisco Bay area (which includes Oakland), and the Sacramento/Stockton and Los Angeles metropolitan areas with a particular focus on areas with a high concentration of ethnic Chinese. The ethnic Chinese markets within the Bank's primary market area have experienced rapid growth in recent periods. According to 1990 Census data, management believes there were an estimated 2.7 million Asian and Pacific Islanders residing in California, an... d approximately 70% of this population were in the middle and upper income brackets. Based on 1995 and 1996 demographic data, management believes there were 200,000 Asian and Pacific Islanders living in San Francisco County, which represented approximately 30% of the total population. In addition, the Bank recently opened a commercial banking office in Pasadena, California to take advantage of the opportunities in the Los Angeles metropolitan area, particularly in the ethnic Chinese market. Management has tailored its products and services to meet the financial needs of these growing Asian and ethnic Chinese communities within its market area. Management believes that this approach, combined with the extensive ties of its management and Board of Directors to the growing Asian and ethnic Chinese communities, provides the Bank an advantage in competing for customers in its market area. The Bank is the largest financial institution focused on serving the ethnic Chinese market within California.More