1.Date of occurrence of the event:2016/05/17

2.Company name:Epistar Corporation

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

  ”subsidiaries”):head office

4.Reciprocal shareholding ratios:NA

5.Name of the reporting media:Apple Daily

6.Content of the report:

 Forepi estimates to layoff around 100 persons from it’s epitaxy site and

 centralize capacity in Hsin Chu sites.

7.Cause of occurrence:2016/05/23 media reporting.

8.Countermeasures:

 The operating loss from Epistar Financial Report in 2015 Q4 and 2016 Q1 are

 1.9 Billion NTD and 1.4 Billion NTD, respectively. However, QoQ operating

 loss was reduced 527 Million NTD. Epistar targets to breakeven by further

 reducing overall cost structure.

 Forepi Corp. belongs to Epistar’s subsidiary companies.  Recently, the

 Epitaxy Production Unit of Forpei Corp. is selected to shutdown

 manufacturing activities because low utilization rate and relative high

 production cost. Epistar aims to centralize Forepi’s epitaxy production

 site into other production sites among Epistar Group in order to reduce

 production and operation cost.

 Employees from Forepi’s epitaxy production unit already not only been

 transferred into other departments but also encourage the employees to

 apply job rotate into other companies among Epistar Corp. The closure of

 epitaxy production unit of Forepi Corp. has no major influence on

 operation of Epistar Corp.

 According to recent media quote from foreign securities on Epistar’s

 revenue to be increased 10~15% in this quarter, Epistar doesn’t publish

 relevant message and considers the quote as speculation.

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