HTC Investors

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To explain the Commercial Times (Taiwan) report on October 26, 2010, page B3
1.Name of the reporting media:Commercial Times (Taiwan), paragraph B3

2.Date of the report:2010/10/26

3.Content of the report:Please refer to the Commercial Times (Taiwan) report on October 26, 2010, page B3.

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

5.Company's explanation of the reportage or provided information:
HTC has been aware that Gemalto, a French based company initiated a patent infringement lawsuit in US District Court for Eastern District of Texas with three patents on October 22. Three patents in the suit is relating an integrated circuit card or device capable of interpretation and execution application of high level programming language. HTC has not received the complaint document officially but has entered a thorough discussion outside counsels.
Currently the case has been entering into court procedure and HTC believes this lawsuit has limited impact on its financial results and sales activities.

6.Countermeasures:N/A

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