1.Date of occurrence of the event:2014/08/07

2.Company name:Epistar Corporation

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

  ”subsidiaries”):head office

4.Reciprocal shareholding ratios:N/A

5.Name of the reporting media:N/A

6.Content of the report:N/A

7.Cause of occurrence:

Background:

Revenue of Epistar Group was NTD 8.13 billion in the second quarter of 2014,

an increase of 33.9% from NTD 6.07 billion for the second quarter of 2013

and an increase of 30.3% from NTD6.24 billion for the first quarter of 2014.

Gross margin for the Group was 21.4% for the second quarter of 2014, an

increase of 5.5% from 15.9% for the second quarter of 2013 and an increase

of 6.2% from 15.2% for the first quarter of 2014. Both Revenue and operating

income showed an increasing trend.

Due to the subsequently measurement of convertible corporate bonds made in

accordance with IFRS in the second of 2014, the losses of NTD 0.24 billion

was reported in the second quarter of 2014. As a result, a net income before

tax of  NTD 0.87 billion was recognized for the second quarter of 2014.

Conversion options, call options and put options embedded in convertible

corporate bonds were stated at fair value at the balance sheet date.

The losses were primarily due to lower liquidity risk、Taiwan dollar

appreciation and company stock price rising compare to the end of first

Quarter. The valuation losses didn’t result in any cash outflow.

If the above impact was excluded, the Group’s net income before tax for the

second quarter of 2014 would be NTD 1.11 billion.

8.Countermeasures:None

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