1.Date of occurrence of the event:2016/03/15

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:Commercial Times

6.Content of the report:Epistar shut down plant the biggest ever

7.Cause of occurrence:2016/03/15 media reporting.

8.Countermeasures:

 Due to China peers' continuous expansion, the overcapacity of LED industry was worsen in 2015 and the price has been dropped sharply.
 

 In response to the increasingly fierce competition, starting from last year, Epistar has been launching measures, such as the increase of the capacity for advanced processes manufacturing, equipments upgrades, production concentration, and new business planning, to reduce costs, optimize the product portfolio, and strengthen the competitiveness.

 After several mergers and acquisitions, Epistar has 15 manufacturing sites spread in Taiwan and China. The N5 site of Epistar and Pingzhen plants of its subsidiary Forepi are too small to meet the need of the group for future capacity and new business planning, and their production costs are high because of the low utilization rate. In order to activate the assets and to cut the expenses, Epistar's BOD decides to sell N5 plant and shut down the production in Pingzhen plant in Q4 this year. A part of the equipments from the plant which is shut down are moved to other sites for replacement or for production concentration so the production costs can be further reduced.
 

 The revenue from the two sites is less than five percent of Epistar Group's and a portion of the equipments has been moved to other sites.
 

 Therefore, the discontinued production does not impact the company's operation significantly. The above material information is announced for clarification purpose.

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