HTC Investors

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Convening of an investor conference concerning Q2 08 Business Review
 Liu to Senior Executive VP and COO to recognize his contribution to the company.

2nd Q ‘08 P&L – PRE-EMPLOYEE BONUS:
(NT$ Bil.)          2Q 07      1Q 08   2Q 08   QOQ    YOY
REVENUES            26.86      32.70   34.62   5.9%   28.9%
GROSS PROFIT        8.95*1     11.81   12.10   2.5%   35.3%
RSGA EXPENSE        2.03        2.91    3.80  30.5%   87.4%
NOP                 6.92        8.95    8.31  -7.1%   20.0%
NPBT                7.24        9.14    8.69  -5.0%   20.1%
NPAT                5.98        8.32    7.81  -6.1%   30.6%
GPM(%)             33.3%       36.1%   35.0%
RSGA RATIO(%)       7.6%        8.9%   11.0%
EPS                10.42       14.51*2 13.62*2
(before ex-rights)
*1.Warranty service and inventory scrap were recognized as opex and non-operating expenses respectively before 2008. NT$1.0bil in Q207 was adjusted into COGS.
*2.The EPS was calculated based on the outstanding shares at the time.

2nd Q ‘08 P&L – POST-EMPLOYEE BONUS (EB):
(NT$ Bil.)              2Q 07   1Q 08   2Q 08    QOQ    YOY
REVENUES                26.86   32.70   34.62    5.9%   28.9%
(EB ADJ in COGS)         0.16    0.16    0.14   -7.2%   -6.9%
GROSS PROFIT             8.79*1 11.66   11.96    2.6%   36.0%
(EB ADJ in RSGA)         1.33    1.33    1.25   -6.1%   -5.8%
RSGA EXPENSE             3.36    4.25    5.05   19.0%   50.5%
NOP                      5.44    7.46    6.91   -7.3%   27.1%
NPBT                     5.75    7.65    7.30   -4.7%   26.8%
NPAT                     4.48    6.94    6.62   -4.7%   47.6%
ADJ GPM(%)              32.7%   35.6%   34.5%
ADJ RSGA RATIO(%)       12.5%   13.0%   14.6%
ADJ EPS*2                7.82   12.12   11.54
(before ex-rights)
*1.Warranty service and inventory scrap were recognized as opex and non-operating expenses respectively before 2008.  NT$1.0bil in Q207 was adjusted into COGS.
*2The EPS was calculated based on the outstanding shares at the time.

2nd Q ‘08 KEY FINANCIALS:
(NT$ Bil.)               2Q 07    1Q 08     2Q 08    QOQ     YOY
CASH                     45.09    63.47     73.24    15.4%   62.4%
AR                       17.80    16.67     19.28    15.7%    8.3%
INVENTORY                 4.81     7.75      5.53   -28.7%   14.9%
NET WORTH                38.66    62.93     48.86*1 -22.4%   26.4%
INVENTORY PROVISON        1.05     1.13      1.18     5.1%   13.2%
AR PROVISION              0.01     0.29      0.32     9.0%     --
WARRANTY PROVISION        1.32     4.02      4.60    14.3%   248.6%
*1.After the deduction of cash dividend of $34 per share (NT$19.48 bil.) and employee cash bonus of $1.21bil.  Ex-dividend date was July 15, 2008. The cash dividend payout date is Aug. 11, 2008.

3rd Q ’08 BUSINESS GUIDANCE:
(1)Revenue expects to grow around 30 percent YOY. GPM expects to be around 34% to 35%. RSGA expense ratio expects to be around 10.5%.
(2)Four to five Diamond family products will be introduced to fill the product portfolio in either form factor, technology platform or ASP consideration in the 2nd H.
(3)The ODM business contribution expects to grow which accounts for around one percentage point GPM decline in this quarter.
(4)Our annual business guidance in either revenue growth or OPEX ratio remain unchanged.

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