1.Date of occurrence of the event:2011/01/18

2.Company name:Epistar Corporation

3.Relationship to the Company (please enter ”head office” or

”affiliate company”):head office

4.Reciprocal shareholding ratios:N/A

5.Cause of occurrence:None

6.Countermeasures:None

7.Any other matters that need to be specified:

(1) Issue Size: US$280,000,000

Issue Price: 100% of par value

Denomination: US$100,000 or in any integral multiples

Expected Issue Date: 2011/01/27

(2) Coupon Interest: 0% per annum

(3) Redemption on the Maturity Date:Unless previously redeemed, repurchased

and cancelled or converted, the Bonds will be redeemed at 100% of principal

amount on the Maturity Date.

Maturity Date: 2016/01/27

(4) Conversion:

A. Conversion Period:

Except for previously redeemed or repurchased of the Bonds or during the

Closed Period (as defined below), the bondholders shall have the right to

request the Issuer to convert the Bonds into Epistar's Common Shares pursuant

to relevant laws and regulations and the Indenture at any time no earlier

than 30 days after the issuance of the Bonds to the date falling 30 days

prior to the Maturity Date.

The aforementioned Closed Period shall mean

(a)The period within sixty (60) days prior to the ordinary shareholders

meeting, thirty (30) days prior to the special shareholders meeting, and

five (5) days prior to the record date for distribution of dividends, bonus

or other benefits.

(b)The period beginning on the 15th Trading Day (as defined below) prior to

the 5th day before the record date for the distribution of stock or cash

dividends or subscription of new shares to the date ending on (and including)

such record date.

(c)In the event of capital decrease of Epistar, the period starts from the

record date for capital decrease to one (1) day prior to the trading day of

the shares reissued after the capital decrease.

(d)Other period in which the shareholder roster of Epistar is closed pursuant

to the ROC laws and regulations.

B. Conversion Price: NTD 132.60 per common share of Epistar Corporation

(Fixed Exchange rate: USD/NTD=29.0240)

C. Redemption at the Option of the Bondholders:

Other than the following events, the bondholders cannot require the Issuer

to redeem, in whole or in part the Bonds, before the Maturity Date:

(a)each bondholder shall have the right to require the Issuer to early redeem

the Bonds, in whole or in part, 3 years following the Issue Date at 100% of

the principal amount.

(b)In the event that the Issuer’s common shares cease to be listed on

the TWSE.

((c)Upon the occurrence of a Change of Control as defined in the Indenture.

D. Redemption at the Option of the Issuer:

(a)The Issuer may early redeem the Bonds in whole or in part at any time

after 3 years following the Issue Date at100% of the principal amount, if

the Closing Price (translated into U.S. dollars at the prevailing exchange

rate) of the common shares of Epistar for a period of 20 out of 30

consecutive trading days is at least 130% of the Conversion Price

(translated into U.S. dollars at the Fixed Exchange Rate).

(b)The Issuer may redeem all outstanding Bonds at 100% of the principal

amount, in the event that at least 90% of the Bonds have been redeemed,

repurchased and cancelled or converted.

(c)If as a result of changes to the relevant tax laws and regulations in the

ROC, the Issuer becomes obligated to pay any additional amounts, the Issuer

may redeem all Bonds at 100% of the principal amount.

(5)This  Bonds are sold and issued outside of Taiwan and list on SGX.

(6)Subscription by Designated Persons：None.

(7) Capital Usage Plan and Benefits:

(a)Acquiring equipment and machinery to increase the capacity.

(b)Repayment of existing USD debt to save interest expense.

(8)Impact to Shareholders: When all the Bonds convert into common shares this

year, the share dilution will be around 6.74%. It will not be a material

adverse effect on the shareholders equity.

(9)Underwriting Syndicate:

Lead Underwriter：Barclays Bank PLC

Domestic Financial Advisor:Horizon Securities Corp.

Trustee:The Bank of New York Mellon

Paying & Conversion Agent:The Bank of New York Mellon