ACHILLES Announces Subsidiary Qihong Electronics (Chengdu) Co., Ltd. Adds Endorsement Guarantees Exceeding NT$30 Million and 5% of Latest Net Assets

1. Factual Date: 115/07/07

2. Endorsed and Guaranteed Parties: (1) Company Name: Shenzhen Xingqihong Technology Co., Ltd. (2) Relationship with Guarantee-Providing Company: Group-affiliated company (both are 100% indirectly invested subsidiaries of the Company) (3) Endorsement Guarantee Limit (in thousand NTD): 4,303,797 (4) Previous Endorsement Guarantee Balance (in thousand NTD): 2,485,716 (5) Amount of New Endorsement Guarantee Added This Time (in thousand NTD): 1,078,707 (6) Endorsement Guarantee Balance as of Factual Date (in thousand NTD): 3,564,423 (7) Actual Amount Drawn by the Guaranteed Company (in thousand NTD): 1,224,174 (8) Reason for This New Endorsement Guarantee: Shenzhen Xingqihong Technology Co., Ltd. obtained a bank loan facility of RMB 230 million, jointly guaranteed by group-affiliated companies Qihong Electronics (Shenzhen) Co., Ltd., Qihong Electronics (Chengdu) Co., Ltd., and Qihong Optoelectronics (Wuhan) Co., Ltd.

(1) Company Name: Qihong Electronics (Shenzhen) Co., Ltd. (2) Relationship with Guarantee-Providing Company: Group-affiliated company (both are 100% indirectly invested subsidiaries of the Company) (3) Endorsement Guarantee Limit (in thousand NTD): 4,303,797 (4) Previous Endorsement Guarantee Balance (in thousand NTD): 3,517,523 (5) Amount of New Endorsement Guarantee Added This Time (in thousand NTD): 2,110,514 (6) Endorsement Guarantee Balance as of Factual Date (in thousand NTD): 5,628,037 (7) Actual Amount Drawn by the Guaranteed Company (in thousand NTD): 2,970,641 (8) Reason for This New Endorsement Guarantee: Qihong Electronics (Shenzhen) Co., Ltd. obtained a bank loan facility of RMB 450 million, jointly guaranteed by group-affiliated companies Shenzhen Xingqihong Technology Co., Ltd., Qihong Electronics (Chengdu) Co., Ltd., and Qihong Optoelectronics (Wuhan) Co., Ltd.

3. Collateral Provided by the Guaranteed Companies: (1) Description: None (2) Value (in thousand NTD): 0

4. Latest Financial Statement Information of the Guaranteed Companies: (1) Capital (in thousand NTD): 1,522,010 (2) Accumulated Profit/Loss (in thousand NTD): 15,324,304

5. Conditions for Release of Endorsement Guarantee Liability: (1) Condition: The endorsement guarantee will be released upon expiration of the bank credit agreement and full repayment. (2) Date: The date when the bank credit agreement expires and the loan is repaid.

6. Total Endorsement Guarantee Limit (in thousand NTD): 90,329,770

7. Endorsement Guarantee Balance as of Factual Date (in thousand NTD): 67,954,866

8. Ratio of Endorsement Guarantee Balance Provided by the Company to the Latest Net Assets of the Publicly Listed Company as of Factual Date: 150.46%

9. Combined Ratio of Endorsement Guarantees, Long-Term Investments, and Fund Lending to the Latest Net Assets of the Publicly Listed Company as of Factual Date: 57.17%

10. Other Matters to be Clarified: I. Capital (in thousand NTD) in the Latest Financial Statements of the Guaranteed Companies: - Shenzhen Xingqihong Technology Co., Ltd.: NTD 879,291 - Qihong Electronics (Shenzhen) Co., Ltd.: NTD 642,719

II. Accumulated Profit/Loss (in thousand NTD) in the Latest Financial Statements of the Guaranteed Companies: - Shenzhen Xingqihong Technology Co., Ltd.: NTD 7,466,334 - Qihong Electronics (Shenzhen) Co., Ltd.: NTD 7,857,970