UCBH Holdings, Inc. Enters Into Stock Purchase Agreements to Acquire Substantially All of the Remaining 75% of Outstanding Shares of Bank of Canton of California.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 28, 2002

Transaction Expected to Close in Fourth Quarter 2002

UCBH Holdings, Inc. (Nasdaq:UCBH), the holding company of United Commercial Bank (UCB(TM)), today announced that it has entered into stock purchase agreements with certain Bank of Canton of California (BCC) shareholders to acquire substantially all of the remaining 75% of the outstanding shares of privately-held BCC.

This announcement follows UCBH's July 3, 2002 announcement of the receipt of definitive agreements from certain other BCC shareholders for UCBH to acquire 25% of the outstanding shares of BCC. The acquisition of substantially all of the outstanding shares of BCC has been approved by the Board of Directors of UCBH and is subject to approval by applicable bank regulatory agencies. UCBH intends to merge Bank of Canton into UCBH's subsidiary, United Commercial Bank, immediately upon the completion of the acquisition.

Under the terms of the agreements announced today, UCBH will purchase substantially all of the remaining 75% of the outstanding shares of BCC for approximately $169 million in cash. As announced on July 3, 2002, UCBH plans to issue approximately 1.3 million shares for the 25% portion of the outstanding shares of BCC. The total transaction is anticipated to close in the fourth quarter of 2002.

Senior management teams at both institutions believe that the customers of both BCC and UCB will benefit through increased banking services and additional locations and that potential opportunities for employee development and career growth will result from combining the two institutions.

"Finalizing our negotiations and executing the stock purchase agreements with substantially all of the Bank of Canton of California shareholders represents a significant milestone for our Company," said Thomas S. Wu, chairman, president and chief executive officer of UCBH Holdings, Inc. "We remain confident that the acquisition of BCC and the merger of BCC with UCB will enhance the strengths of both institutions.

"Combining the knowledge and experience of both organizations will create a new standard of banking excellence within the ethnic Chinese communities of California. The valued customers and employees of both banks will play important roles in the success of this merger. Both management teams are fully committed to working closely together to optimize the benefits of this merger for our customers and employees."

"As we expect the transaction to close during the fourth quarter of 2002, we project that it will have no impact on our 2002 earnings. However, we anticipate that the transaction will provide a minimum of 5% earnings accretion for the full-year 2003. Accordingly, for the year ending December 31, 2003, UCBH now projects earnings of $2.39 or more per share. The increase from the previous guidance of $2.28 per share reflects the BCC acquisition," concluded Mr. Wu.

About UCBH Holdings, Inc.

UCBH Holdings, Inc. is the holding company for United Commercial Bank, the leading California bank serving the ethnic Chinese community. The Bank has 30 offices located in the San Francisco Bay Area, Sacramento, Stockton and Greater Los Angeles, as well as a representative office in Hong Kong, SAR, providing a wide range of consumer banking services to individuals and commercial banking services to small- and medium-sized businesses and professionals in a variety of industries. United Commercial Bank offers a full range of lending activities, including residential and commercial real estate, construction, commercial credit facilities, working capital loans, international trade finance services, and online banking services for businesses and consumers. The Bank also maintains an interactive Internet banking and community portal, www.ibankUNITED.com, in both English and Chinese. For additional information, visit the web site for UCBH Holdings, Inc. located at www.ucbh.com.

About Bank of Canton of California

Bank of Canton of California, headquartered in San Francisco, had assets of approximately $1.45 billion as of June 30, 2002. BCC operates eight offices in the San Francisco Bay Area as well as four offices in Greater Los Angeles. The BCC management team has grown its earnings at an annual rate in excess of 25% over the past four years. Founded in May 1937, BCC has a rich history in the Chinese community within San Francisco. The institution, established to serve the ethnic Chinese market in San Francisco, later expanded to serve the Chinese population in the Los Angeles market. BCC offers a full complement of commercial and consumer banking services. Bank of Canton also sponsors the Pacific Heritage Museum in San Francisco's Financial District. For additional information, visit the web site for BCC located at www.bankcanton.com.

Forward-Looking Statements

Certain statements contained in this release, including without limitation, statements containing the words "believes," "plans," "expects," "anticipates," and words of similar import, constitute "forward-looking statements" within the meaning of applicable law. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of UCBH or UCB to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions in those areas in which UCBH or UCB operates; demographic changes; competition; fluctuations in market interest rates; changes in business strategies; changes in governmental regulation; changes in credit quality and other risks and other uncertainties including those detailed in the most recent quarterly and annual reports filed by UCBH with the Securities and Exchange Commission. Given these risks and uncertainties, undue reliance should not be placed on such forward-looking statements. UCBH and UCB disclaim any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.