1.Date of occurrence of the event:2010/10/18

2.Cause of occurrence:

Bureau of Environmental Protection Hsin-Chu confirmed that N2 fab failed to

mark the wastes and submit reports for tentative storage on Aug 3rd, 2010.

Although EPISTAR made clarification to the Bureau on Sep 6th, explanation

was not accepted. Penalty was issued pursuant Article 31 and Article 36 of

Waste Disposal Act.

3.Course and progression of handling of the matter:

The waste has been marked and the reports have been submitted.

4.Anticipated possible loss:Penalty of NTD120,000.

5.Amount of insurance indemnification that might be obtained:None

6.Status of remediation and future countermeasures:

The violation occurred because of manpower turnover. Epistar will enforce

management and enhance audit quality to prevent reoccurrence.

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