HTC : Board of Directors Approved the Capital Reduction due to Cancellation of Restricted Employee Shares

1.Date of the board of directors resolution: 2017/03/06

2.Reason for the capital reduction:

As the vesting conditions of the issuance of restricted employee shares have not been met by the intended employee,

HTC will withdraw issuance to such employee without compensation and cancel 104,500 shares.

3.Amount of the capital reduction: NTD $1,045,000

4.Cancelled shares: 104,500 shares

5.Capital reduction ratio: 0.0127%

6.Share capital after the capital reduction: NTD$8,219,041,550

7.Scheduled date of the shareholders' meeting: N/A

8.Estimate listed shares, the ratio of listed shares to outstanding

shares, after the capital reduction: N/A

9.Countermeasures of the aforesaid estimate change in shareholding

after the capital reduction: N/A

10.Any other matters that need to be specified:

Record date for capital reduction is March 6, 2017