UCBH Holdings, Inc. Receives Preliminary Approval to Participate in the U.S. Treasury's Capital Purchase Program

Business Wire, Oct 27, 2008

SAN FRANCISCO -- UCBH Holdings, Inc. (NASDAQ:UCBH), the holding company of United Commercial Bank (UCB[TM]), today announced that on October 24, 2008, it has received preliminary approval for an investment of $298 million from the U.S. Department of the Treasury (the "Treasury") to participate in its Capital Purchase Program (the "Program"), the proceeds of which will dramatically strengthen the Company's already strong capital position. UCBH's total risk-based capital ratio of 12.5% as of September 30, 2008, which is well above the regulatory requirements of 10.0% for "well capitalized" banks, would increase to 15.0% with the inclusion of this new capital.

"This is an enormous statement of confidence and demonstrates that we are a healthy financial organization that can help support the U.S. financial markets in this time of economic turmoil," said Thomas S. Wu, Chairman, President and Chief Executive Officer of UCBH Holdings, Inc. "It is indeed a testament to the strength, safety and soundness of our Company. We intend to put these proceeds to good use for our customers and shareholders. We plan to deploy the funds to support loan growth, to provide a measure of support against uncertainty in the credit markets and to position UCBH for additional market opportunities."

The Capital Purchase Program is designed to encourage healthy U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. financial system. Under the Program, the Treasury will purchase up to $250 billion of senior preferred shares of qualified U.S. controlled financial institutions. Financial institutions must voluntarily apply to participate, but the Treasury determines the eligibility and allocations for qualifying institutions.

About UCBH Holdings, Inc.

UCBH Holdings, Inc., with $13.04 billion in assets as of September 30, 2008, is the holding company for United Commercial Bank, a state-chartered commercial bank, which is a leading bank in the United States serving the Chinese communities and American companies doing business in Greater China. Together, the Bank and its subsidiaries, including United Commercial Bank (China) Limited, operate 51 California branches/offices located in the San Francisco Bay Area, Sacramento, Stockton, Los Angeles and Orange counties, eight branches in New York, five branches in metropolitan Atlanta, three branches in New England, two branches in the Pacific Northwest, a branch in Houston, branches in Hong Kong, Shanghai and Shantou, China, and representative offices in Beijing, Guangzhou and Shenzhen, China, and Taipei, Taiwan. UCB, with headquarters in San Francisco, provides commercial banking services to small- and medium-sized businesses and professionals in a variety of industries, as well as consumer and private client services to individuals. The Bank offers a full range of lending activities, including commercial real estate and construction loans, commercial credit facilities, international trade finance, asset-based financing, cash management, loans guaranteed by the U.S. Small Business Administration, commercial, multifamily and residential mortgages, home equity lines of credit, and online banking services for businesses and consumers. For additional information, visit the web site for United Commercial Bank at www.ibankUNITED.com or the web site for UCBH Holdings, Inc. at www.ucbh.com.

Forward-Looking Statements

Certain statements contained in this release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions that may or may not prove correct. Forward-looking statements are also subject to known and unknown risks, uncertainties and other factors relating to the Company's and the Bank's operations and business environment, all of which are difficult to predict, and many of which are beyond the control of the Company and the Bank. The factors include, among others: the current dislocations in global credit and capital markets; economic and business conditions in the areas and markets in which the Company and the Bank operate, particularly those affecting loans secured by real estate; deterioration or improvement in the ability of the Bank's borrowers to pay their debts to the Bank; market fluctuations such as those affecting interest and foreign exchange rates and the value of securities in which the Bank invests; competition from other financial institutions, whether banks, investment banks, insurance companies or others; the ability of the Bank to assimilate acquisitions, enter new markets and lines of business, and open new branches, successfully; changes in business strategies; changes in tax law and governmental regulation of financial institutions; demographic changes; and other risks and uncertainties, including those discussed in the documents the Company files with the Securities and Exchange Commission ("SEC"). The foregoing may cause the actual results and performance of the Company and the Bank to be materially different from the results and performance indicated or suggested by the forward-looking statements. Further description of the risks and uncertainties are included in detail in the Company's current, quarterly and annual reports, as filed with the SEC.