AMENDMENT TO THE REGULATIONS GOVERNING THE SCOPE OF MATERIAL INFORMATION AND THE MEANS OF ITS PUBLIC DISCLOSURE UNDER THE SECURITIES AND EXCHANGE ACT

03/01/2011

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In response to amendment to Article 157-1 of the Securities and Exchange Act regarding insider trading on 2 June 2010, the Executive Yuan on 22 December 2010 amended the Regulations Governing the Scope of Material Information and the Means of its Public Disclosure under Paragraph 4 of Article 157-1 of the Securities and Exchange Act, and changed the name to "Regulations Governing the Scope of Material Information and the Means of its Public Disclosure under Paragraphs 5 and 6 of Article 157-1 of the Securities and Exchange Act." Main amendments are highlighted as follows.
l	Add the occurrence of certain events as material information relating to the finances or businesses of a company under Paragraph 5 of Article 157-1 of the Securities and Exchange Act, such as significant changes in the company's operating profit/loss or pre-tax profit/loss comparing to the same period in the previous year, or comparing to the previous period, which are not due to a seasonal factor.
l	Add the occurrence of the event, where a company, its controlling company or any material subsidiary is searched by law enforcement personnel, as a type of material information which will have a material impact on the supply and demand of the company's securities on the market.
l	List the occurrence of certain events as information that will have a material impact on the company's ability to repay principal or interest, such as reorganization, bankruptcy or dissolution, and material loss which is likely to result in financial distress or suspension of business of the company. A catch-all clause is also introduced to ensure the full coverage of this clause.
l	Material information should be determined based on its probability of occurrence and possible influence on a reasonably prudent investor's investment decision. To avoid the misinterpretation that material information does not exist until it is ascertained, the ascertainment time of material information is amended from "any other date sufficient for such determination" to "any other date sufficient for such ascertainment based on substantial facts."