1.Date of occurrence of the event:2014/11/13

2.Company name:Epistar Corporation

3.Relationship to the Company (please enter ”head office” or

  ”subsidiaries”):head office

4.Reciprocal shareholding ratios:N/A

5.Name of the reporting media:N/A

6.Content of the report:N/A

7.Cause of occurrence:

Background:

Revenue of Epistar Group was NTD 7.63 billion in the third quarter of 2014,

an increase of 32.7% from NTD 5.75 billion for the third quarter of 2013

and an decrease of 6.2% from NTD8.13 billion for the second quarter of 2014.

Gross margin for the Group was 22.5% for the third quarter of 2014, an

increase of 6.4% from 16.1% for the third quarter of 2013 and an increase

of 1.1% from 21.4% for the second quarter of 2014. Even if the revenue  for

 the third quarter of 2014 is less than for the second quarter of 2014 gross

margin rate showed an increasing trend. The operating profit was 2.22 billion

for the nine-month periods ended of September 30 ,2014.

Due to the subsequently measurement of convertible corporate bonds made in

accordance with IFRS in the third of 2014, the gains of NTD 1.22 billion

was reported in the third quarter of 2014. As a result, a net income before

tax of  NTD 2.18 billion was recognized for the third quarter of 2014.

Conversion options, call options and put options embedded in convertible

corporate bonds were stated at fair value at the balance sheet date.

The gains were primarily due to lower liquidity risk、Taiwan dollar

appreciation and company stock price down compare to the end of third

Quarter. The valuation gains didn’t result in any cash inflow.

If the above impact was excluded, the Group’s net income before tax for the

third quarter of 2014 would be NTD 0.96 billion.

8.Countermeasures:None

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