HTC Investors

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To clarify the news with respect to HTC’s Trademark Registration.
1.Name of the reporting media:News on Edition A13 of Economic Daily News and Edition A3 of Commercial Times. 

2.Date of the report:2006/09/21 

3.Content of the report: News with respect to HTC’s
Trademark Registration. 

4.Summary of the information provided by investors:N/A. 

5.Company's explanation of the reportage or provided information:
(1) Highlight Tech Corp. filed suit against Company alleging that Company infringes its registered trademark last year, which has been dismissed by the court. According to the judgment, Company has the legitimate rights to continue the use its trademark and is not liable for any ompensations or damages.
(2) Company is preparing to appeal the judgment regarding the subject trademark registration rendereded by Taipei High Administrative Court. The Court’s failure to summon expert witness to provide his opinions to differentiate Company’s trademark and the mark owned by the opposing party leads the judgment illegal due to the lack of sound investigation and reasoning.
(3) The news on Economic Daily News stating that Company can not use the word mark “HTC” as its trademark is incorrect. Company still has rights to use HTC trademark. Moreover, the proceeding referred in the news will have no influence on the new logo that Company uses on its branding products.
(4) It is also not true that the subject trademark of Company
posted on Commercial Daily has been abrogated after being opposed by Highlight Tech Corp. Company still has right to use the subject trademark. 

6.Countermeasures:Company will appeal to the Supreme Administrative Court against the judgment rendereded by Taipei High Administrative Court. 

7.Any other matters that need to be specified:This proceeding does not affect Company operations. Company can continue to use the subjecttrademark and is not liable for any compensations or damages.