[Phison] Announces Board of Directors' Resolution to Conduct Treasury Stock Buyback and Cancellation of Restricted Employee Stock Options, and Capital Reduction

1. Date of Board of Directors' resolution: 115/05/11 2. Reason for capital reduction: (1) Cancellation of 620,000 shares repurchased as treasury stock, in accordance with Article 28-2 of the Securities Transaction Act. (2) Cancellation of 450 restricted employee stock options due to employees leaving before meeting vesting conditions. 3. Capital reduction amount: NT$6,204,500 4. Shares to be cancelled: 620,450 shares 5. Capital reduction ratio: 0.83% 6. Share capital after capital reduction: NT$741,566,790 7. Date of shareholders' meeting: Not applicable 8. Number of common shares listed after capital reduction: Not applicable 9. Percentage of listed common shares after capital reduction to issued common shares (post-reduction listed common shares / post-reduction issued common shares): Not applicable 10. If the number of listed common shares after reduction is less than 60 million and less than 25%, please explain measures to address low equity circulation liquidity: Not applicable 11. Base date for capital reduction: (1) Treasury stock: To be determined by the Chairman. (2) Restricted employee stock options: May 14, 115. 12. Other matters to be noted: None.