HTC Investors

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The Company announces to increase the capital of HTC Electronics (Shanghai) Co., Ltd.
1.Date of occurrence of the event:2011/01/21

2.Method of the present increase (decrease) in investment:To execute a capital injection of USD32,000,000 into subsidiary HTC Electronics (Shanghai) Co., Ltd. through a capital increase of USD32,000,000 for High Tech Computer Asia Pacific PTE. Ltd..

3.Transaction volume, price per unit, and total monetary amount of the transaction:USD32,000,000

4.Company name of the invested mainland Chinese company:HTC Electronics (Shanghai) Co., Ltd.

5.Paid-in capital of said invested mainland Chinese company:USD100,909,044

6.Amount of new capital increment currently planned by said invested mainland Chinese company:USD32,000,000

7.Main business items of said invested mainland Chinese company:To research, develop, design, manufacture and fabricate computer, PDA, handset (100% for export) and the components and accessories of the above-mentioned products; to design, develop computer software; to sell own-manufactured products; and to provide related technical consultancies and services.

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

9.Net worth of said invested mainland Chinese company on the financial statement for the most recent fiscal year:RMB 811,581,175.32 (according to PRC CPA audited financial statements)

10.Amount of profit/loss of said invested mainland Chinese company on the financial statement for the most recent fiscal year:Net profit RMB 141,929,923.45 (according to PRC CPA audited financial statements)

11.Amount of actual investment to date in said invested mainland Chinese company:USD101,000,000

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:Investment will be executed after approval by the Investment Committee of the MOE.

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 of Directors on January 21, 2011.

18.Broker:N/A

19.Concrete purpose of the acquisition or disposal:For the expansion of capacity and dormitory at the Company’s Shanghai Kangqiao Factory.

20.Do the directors have any objection to the present transaction?:N/A

21.Total amount of mainland China area investment (including the present investment) approved by the Investment Commission to date:USD187,700,000

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:67.62%

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:3.00%

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:7.40%

25.Total amount of actual investment in the mainland China area to date:USD155,000,000

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:55.84%

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:2.48%

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:6.11%

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 NTD58 Thousands for 2008.
To recognize investment gains NTD20,995 Thousands for 2009.
To recognize investment gains NTD608,591 Thousands for 2010.

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?:None

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