晶元光電 2011/08/12

Clarification on media reporting

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1.Name of the reporting media: 1-apple weekly

2.Date of the report:2011/08/12

3.Content of the report:

.....Epistar starting personnel reorganization and cost reduction

4.Summary of the information provided by investors:NA

5.Company's explanation of the reportage or provided information:

Owing to the weak demand, the company's revenue of July decreased 15.7% when

compared with June. At this moment, the company strenghten both employee

training and enhance product performance, the company encourage employee use

their legal vacation to engaged in leisure activities, in order to adjust

physically and mentally status to face the challenges in the future.

6.Countermeasures:None

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