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12.21 2009

To clarify the reporting in Economic Daily News

1.Name of the reporting media:Economic Daily News

2.Date of the report:2009/12/21

3.Content of the report:

Epistar's projected revenue may jump by 40%, totaling 18 billion next year….

And the 3-billion investment in the Suzhou Factory will present the largest

LED manufacturing site in the Mainland.

4.Summary of the information provided by investors:NA

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

The coverage on Epistar's 2010 projected revenue with 40% growth, reaching

18 billion, is pure speculation by the media since Epistar has not announced

the financial estimation.

Epistar and the Jiangsu Changzhou City Hall have entered into the investment

MOU, so far investment in Suzhou has not been taken into consideration. Any

investment in China will be announced according to the regulations.

6.Countermeasures:None

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