1.Date of occurrence of the event:2011/08/16

2.Cause of occurrence:

In an audit, Hsin-Chu Bureau of Environmental Protection found Epistar has

violated the Article 24 Section 2 of Air Pollution Control Act because it

disapproval pollution control plan by authority government.

3.Course and progression of handling of the matter:

The issuance of operating permits is completed.

4.Anticipated possible loss:Penalty of NTD100,000.

5.Amount of insurance indemnification that might be obtained:None

6.Status of remediation and future countermeasures:

Epistar will enhance employee’s training and education.

7.Any other matters that need to be specified:None