HTC Investors

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Announcement to increase capital to High Tech Computer Asia Pacific Pte. Ltd. by USD 8 million which will be used to indirectly invest in a China subsidiary

1.Date of occurrence of the event:2008/07/31

2.Method of the present increase (decrease) in investment:Indirectly Invest through HTC's subsidiary High Tech Computer Asia Pacific Pte. Ltd.

3.Transaction volume, price per unit, and total monetary amount of the transaction:USD8,000,000

4.Company name of the invested mainland Chinese company:Company's Name hasn't been decided due to it is a new seeting up subsidiary

5.Paid-in capital of said invested mainland Chinese company:0

6.Amount of new capital increment currently planned by said invested mainland Chinese company:USD8,000,000

7.Main business items of said invested mainland Chinese company:Subsidiary’s principal business operations will be as an SMO operation focused on marketing and promotion of Company’s products in the China region.

8.Type of CPA opinion issued for the financial statement of said invested mainland Chinese company for the most recent fiscal year:N/A

9.Net worth of said invested mainland Chinese company on the financial statement for the most recent fiscal year:N/A

10.Amount of profit/loss of said invested mainland Chinese company on the financial statement for the most recent fiscal year:N/A

11.Amount of actual investment to date in said invested mainland Chinese company:0

12.Counterparty to the transaction and its relationship to the Company:N/A

13.Where the counterparty to the transaction is an actual related party, public announcement shall also be made of the reason for choosing the related party as the counterparty and the identity of the previous owner (including its relationship with the company and the trading counterpart), the date of transfer, and the price:N/A

14.Where a person who owned the subject matter of the transaction within the past five years has been an actual related party of the company, public announcement shall also be made of the dates and prices of acquisition and disposal by the related party and such party's relationship to the company at those times:N/A

15.Gain (or loss) on disposal:N/A

16.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations:N/A

17.The manner of deciding on this transaction, the reference basis for the decision on price and the decision-making department:It is resolved by the Board Meeting on July 31,2008

18.Broker:N/A

19.Concrete purpose of the acquisition or disposal:Long-term investment

20.Do the directors have any objection to the present transaction?:All directors have no objection to the present transaction

21.Total amount of mainland China area investment (including the present investment) approved by the Investment Commission to date:USD78,200,000

22.Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the paid-in capital on the financial statement for the most recent period:31.59%

23.Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the total assets on the financial statement for the most recent period:2.23%

24.Ratio of the total amount of investment (including the present investment) in the mainland China area approved by the Investment Commission to date to the shareholders’ equity on the financial statement for the most recent period:4.88%

25.Total amount of actual investment in the mainland China area to date:USD59,900,000

26.Ratio of the total amount of actual investment in the mainland China area to date to the paid-in capital on the financial statement for the most recent period:24.20%

27.Ratio of the total amount of actual investment in the mainland China area to date to the total assets on the financial statement for the most recent period:1.71%

28.Ratio of the total amount of actual investment in the mainland China area to date to the shareholders’ equity on the financial statement for the most recent period:3.74%

29.Amount of recognized profits and losses on investment in the mainland China area for the most recent three fiscal years: To recognize investment losses NTD 38,593 Thousands for 2005. To recognize investment losses NTD 59,196 Thousands for 2006. To recognize investment gains NTD 24,317 Thousands for 2007.

30.Amount of profit remitted back to Taiwan for the most recent three fiscal years:None

31.Has the CPA issued an opinion on the unreasonableness of the price of the current transaction?:N/A

32.Any other matters that need to be specified:The Chairperson be authorized to approve all related matters concerned.