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12.07 2009

To clarify the reporting in Economic Daily News

1.Name of the reporting media:Economic Daily News

2.Date of the report:2009/12/05

3.Content of the report:

Epistar aligned with Lite-on in the LED supply chain

4.Summary of the information provided by investors:NA

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

Epistar entered into the Memorandum of Understanding on Investment with the

Changzhou City Hall, Jiangsu on Dec 4th.  The reason why we wish to sign an

investment memorandum of understanding (MOU) is due to the fact that the

area is China's information technology (IT) hub where many of our clients

have manufacturing presence and that we can provide timely service to them.

The amount of investment and entities to collaborate with remains under

discussion.

6.Countermeasures:None

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