1.Date of occurrence of the event:2010/10/06

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

did not replace the activated carbon for its absorption equipment in the

time limit, and is subject to fine.

3.Course and progression of handling of the matter:

The replacement 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 has developed an e-management system to improve the internal

control function.

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