1.Name of the reporting media:Economic Daily News

2.Date of the report:2010/12/04

3.Content of the report:

Epistar, Everlight set up joint venture in Xiamen

4.Summary of the information provided by investors:NA

5.Company's explanation of the reportage or provided information:

Epistar had announced and clarified on Oct.5,2010 as follow:

(1)The invested company is tentatively named as  KFES Lighting(XIAMEM)

Co.,Ltd., and tentatively location is Xiamen.

(2)CEC, taking the major ownership, would  hold roughly 44%, and EPISTAR

holds 40%. EPISTAR will assign  the operational team to develop LED epitaxy

and chip business.  Instead of including LED packaging in the business scope

of the invested company, LED packing will be outsourced to other packing

houses.

(3)EPISTAR  would continue to focus on LED Epitaxy and chip business.

Joint venture company allows co-designing with down-stream clients, which

in terms, strengthening partnership with BLU and Lighting clients.

6.Countermeasures:None

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