Cathay Merchant Group, Inc. Amends Bylaw to Reduce Quorum Requirement

  
    
  
  
    
      Cathay Merchant Group, Inc. (AMEX: CMQ) (the “Company”) 
      – On May 22, 2007, the Board of Directors of 
      the Company amended its bylaws to reduce the Company’s 
      quorum requirement, which requirement is necessary to constitute a valid 
      and duly called meeting of its shareholders. Following the amendment, 
      the Company’s quorum requirement was reduced 
      from shareholders holding at least 50% of the issued and outstanding 
      shares to shareholders holding at least 33.3% of the issued and 
      outstanding shares. The Board of Directors approved the reduction 
      because it had found it exceedingly difficult to satisfy its former 
      quorum requirement. As the 2007 annual general meeting was adjourned 
      because the Company did not obtain the requisite quorum, the Company 
      hopes that the reduction will enable the Company to hold future 
      shareholder meetings without delay.