Hsinchu, Taiwan – Sept. 16, 2010 – Epistar Corporation (“Epistar”) and Toyoda Gosei Co., Ltd.
(“Toyoda Gosei”) entered a cross license agreement to allow the companies (including subsidiaries)
to use each other’s patents for specific technologies in Group III-V compound semiconductor light
emitting diodes (“LEDs”), which include InGaN LEDs and AlGaInP LEDs. Epistar is the only company
in Taiwan, R.O.C. getting the cross license from Toyoda Gosei and no any other company in Taiwan
gets any cross license from Toyoda Gosei until the date of this press released.

Epistar holds valuable patents for high-brightness AlGaInP LEDs and high-power GaN LEDs. Toyoda
Gosei likewise holds a number of valuable patents for InGaN LEDs. Epistar and Toyoda Gosei agreed
to construct an environment wherein they will respect and mutually utilize each other’s technologies
in order to further advance the market for LED products.

This agreement will allow both Epistar and Toyoda Gosei significantly more freedom in their
development efforts by eliminating the need for concern about each other’s patents. By facilitating
research at both companies, new developments in LED technology are anticipated, including an
acceleration of research to improve the luminosity of LEDs.

Epistar and Toyoda Gosei each intend to maintain a friendly business relationship and pursue the
development of superior high-luminosity LEDs and further expansion of the LED market through fair
competition.