Poteen Announces Funds Lending to Its Subsidiary Under Article 22, Paragraph 1, Item 2 of the Handling Guidelines for Funds Lending and Guarantees by Publicly Issued Companies

1. Date of Fact: 115/06/16

2. Recipient of Funds Lending:
(1) Company Name: Crystal Success Materials Co., Ltd.
(2) Relationship with Lending Company:
Direct investment by the company or through a company holding 100% of voting rights
(3) Lending Limit (in thousand NT$): 959,707
(4) Previous Outstanding Balance (in thousand NT$): 312,266
(5) Amount of Newly Added Lending (in thousand NT$): 11,663
(6) Is this a board-authorized arrangement allowing the chairman to disburse funds in installments or on a revolving basis to the same recipient? No
(7) Outstanding Balance as of Fact Date (in thousand NT$): 323,929
(8) Reason for New Lending:
Operational funding needs

3. Collateral Provided by the Recipient Company:
(1) Description: None
(2) Value (in thousand NT$): 0

4. Latest Financial Statement Information of the Recipient Company:
(1) Capital (in thousand NT$): 780,000
(2) Accumulated Deficit (in thousand NT$): -333,361

5. Interest Calculation Method:
Annual interest rate of 0%

6. Repayment Terms:
(1) Conditions: Full principal repayment at maturity
(2) Date: One year after disbursement

7. Total Outstanding Lending Balance as of Fact Date (in thousand NT$):
333,259

8. Ratio of Outstanding Lending Balance to the Net Equity of the Publicly Issued Company (based on latest financial statements):
19.57%

9. Source of Lending Funds:
From the subsidiary itself

10. Other Matters to be Disclosed:
None