Pateks-KY Announces Board Resolution for Surplus Transfer Capital Increase and New Share Issuance

1. Date of Board Resolution: 115/05/12. 2. Source of Capital Increase Funds: 114 FY Surplus Transfer Capital Increase. 3. Whether to adopt a global depositary receipt issuance for new shares (Yes, please state the planned issuance period / No): No. 4. Total issuance amount and number of shares for the entire case (If it is a surplus or capital reserve transfer for capital increase, the number of shares issued does not include those allocated to employees): Total amount NT$15,350,430, total shares 1,535,043. 5. For cases adopting global depositary receipt issuance for new shares, the issuance amount and number of shares for this time: Not applicable. 6. For cases adopting global depositary receipt issuance for new shares, the remaining amount and number of shares after this issuance: Not applicable. 7. Face value per share: NT$10. 8. Issuance price: Not applicable. 9. Number of shares subscribed by employees or allocated amount: Not applicable. 10. Number of shares for public sale: Not applicable. 11. Proportion of bonus issue for existing shareholders or gratuitous distribution: After board resolution, existing shareholders will receive approximately 25 shares gratuitously for every 1,000 shares. 12. Handling of fractional shares and unexercised shares: Fractional shares less than one share will be handled by shareholders by registering at the company's stock agency within five days from the ex-rights ex-dividend registration date to consolidate into one full share. Fractional shares that are not consolidated or are less than one share after consolidation will be converted to cash at par value, rounded down to the nearest dollar, and the chairman is authorized to negotiate with specific individuals to subscribe at the issuance price. 13. Rights and obligations of new shares issued in this capital increase: Same as previously issued shares. 14. Purpose of funds from this capital increase: To meet the needs of the company's business development. 15. Other matters to be stated: (1) Regarding the capital increase matters, after approval by the shareholders' meeting and submission to the competent authority for approval, it is proposed to authorize the board of directors to set the record date for share distribution separately. (2) If the shareholder distribution ratio for this surplus capital increase changes due to changes in laws and regulations, requirements from regulatory authorities, or changes in the number of the company's common shares affecting the number of outstanding shares, and requires amendment, the board of directors is authorized to handle it with full authority.