HTC Investors

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Convening of an investor conference concerning Q4 09 Business Review
1.Date of the investor/press conference:2010/01/26

2.Location of the investor/press conference:Conference call

3.Financial and business related information:
4Q09 BUSINESS REVIEW:
(1)4Q revenue reached NT$41bn.
(2)4Q GPM was 32.0%.
(3)4Q OPEX ratio came at 17.2%; therefore, 4Q operating margin reached 14.9% within guidance.
* All the numbers above are based on unconsolidated financial statements.
 
2010 GOAL: THE HTC BRAND YEAR:
(1)Choice of Smart Phone Brand.
(2)HTC Brand Reaches to Masses by Growing Volume & Expanded Product Portfolio.
(3)Continue to Drive Marketing Campaign for Brand Awareness.
 
MANAGEMENT INITIATIVES:
(1)HD2 successfully drives innovation and creates wide spread consumer preference on HTC WM platform; and it continues help HTC to bring WM momentum and remains our WM leadership position even at WM’s transition stage.
(2)Nexus One shows HTC’s Android leadership position and strategic partnership with Google on mobile internet; and the Google Phone launch significantly raises the brand awareness for HTC as well as Android platform.
(3)Solid phase II branding development progress meet the management expectation evidenced with the across the board acceptance of HTC brand products from world carriers.
(4)HTC Smart is an initiative to broaden HTC brand reach and further help grow our operation scale in an efficient way by expanding our addressable market.
 
MATERIAL BOARD RESOLUTIONS:
(1)2010 Annual General Shareholders Meeting will be held on June 18, 2010. Two independent directors to be elected in the election of independent directors at the 2010 Annual General Shareholders Meeting.
(2)The board approved 2010 employee bonus appropriation rate for accrued expenses is set at 18% of net profit after taxes, prior to this employee bonus adjustment.
(3)The board promoted COO Mr. Fred Liu to Corporate Senior Executive Vice President and President of Engineering and Operations.
 
1Q10 BUSINESS OUTLOOK:
(1)1Q brand unit expects to grow more than 30% from a year ago.
(2)1Q revenue expects at the range from NT$32bn to NT$34bn.
(3)GPM expects to be around 30.0%± 0.5%.
(4)OPEX ratio expects to be around 17.0%± 0.5%.
* All the numbers above are based on unconsolidated financial statements.

4.Any other matters that need to be specified: The material for the investor conference is disclosed under corporate governance item on Market Observation Post system and HTC Corporation Website.