HTC Investors

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To clarify reporting from United Evening News.
1.Name of the reporting media:United Evening News 

2.Date of the report:2006/11/07 

3.Content of the report: Regarding the HTC report on Page 18th 

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

5.Company's explanation of the reportage or provided information:
To clarify reporting from United Evening News: 
(1) HTC client did not return USD$ 40 millions value goods.
(2) Defective component had been sorted. HTC will cooperte with the supplier, Singatron, to rework the issue.
(3) Estimated expense of rework is around NTD.$ 5 Million. HTC will negotiate with Singatron about the liability.

6.Countermeasures:N/A.

7.Any other matters that need to be specified:N/A.