1.Date of the board of directors resolution:2015/01/09

2.Reason for the capital reduction:

(1)Because the employees who entitled to receive restricted employee shares

   have not met qualification, The Company decided to take back and cancelled

   450,000 shares of restricted employee shares.

(2)1,170,103 shares of Epistar’s common have been cacelled as following

   reasons:(i)Huga optotech repurchased its share about 5,675,5000 shares

   from December 30, 2011 to January 31, 2012 and transferred shares to its

   employees. Later, the Company and Huga optotech made share swap, According

   to share swap ratio, Huga optotech would hold 1,170,103 shares of

   Epistar’s common shares. (ii)In accordance with law, The shares buy back

   by a company shall be transferred within three years from the date of

   buyback. The shares not transferred within the said time limit shall be

   cancelled.

3.Amount of the capital reduction:NT$16,201,030

4.Cancelled shares:1,620,103

5.Capital reduction ratio:0.15%

6.Share capital after the capital reduction:NT$11,015,586,310

7.Scheduled date of the shareholders' meeting:NA

8.Estimate listed shares, the ratio of listed shares to outstanding

 shares, after the capital reduction:NA

9.Countermeasures of the aforesaid estimate change in shareholding

 after the capital reduction:NA

10.Any other matters that need to be specified:

The record date of capital reduction is 2015/01/31