Epistar : Investigating Potential Employee Misappropriation

1.Date of occurrence of the event:2017/05/25

2.Company name:Epistar Corporation

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

'subsidiaries'):head office

4.Reciprocal shareholding ratios:NA

5.Cause of occurrence:

Epistar Corporation has initiated an investigation into potential

misappropriation of the Company's proprietary information by an employee.

The Company has retained outside advisors, is performing an internal

forensic examination and working together with the public prosecutor,

whose office organized an investigation by officers of the Investigation

Bureau.

The Company is unable to disclose further details presently, due to the

ongoing criminal investigation. The matter is not expected to have any

substantial impact on the Company's business and operations.

6.Countermeasures:

Epistar fully recognizes the essential role that proprietary information

plays in the Company and makes a point to vigorously investigate and

follow-up on any allegation. The Company always takes such matters

seriously, demonstrating our determination to vigorously defend our

Intellectual Property Rights.

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