8996 Kao Li Announces Exercise of Redemption Right for Fourth Domestic Convertible Bond and Termination of OTC Trading

Release Date: July 2, 115 Statement Date: July 1, 115 Statement Time: 16:46:58 Company Code: 8996 Company Name: Kao Li Subject: Announcement regarding Kao Li Co., Ltd. exercising its bond redemption right for the fourth domestic unsecured convertible bond (short name: Kao Li IV, code: 89964), and the termination of over-the-counter (OTC) trading on August 28, 115. Applicable Clause: Clause 51 Factual Date: July 1, 115 Details: In accordance with Article 18, Paragraph 2 of the 'Kao Li IV Issuance and Conversion Regulations'. The issuing company will exercise its bond redemption right from July 27, 115 to August 27, 115, at a redemption price equal to 100.0000% of the bond's face value.

(1) This convertible bond may be redeemed if the closing price of the company's common stock exceeds 130% (inclusive) of the current conversion price for 30 consecutive trading days, during the period from the day after the third month following issuance (March 7, Year 113) to 40 days before the maturity date (October 27, Year 117). Upon such occurrence, the company may, within the subsequent 30 trading days, send a 'Bond Redemption Notice' via registered mail, effective 30 days after mailing (the redemption reference date being the final day of this 30-day period, which must not fall within a conversion suspension period as defined in Article 9). The redemption price shall be the bond's face value, paid in cash for all outstanding bonds, and the company shall request public announcement via the OTC market. The company shall complete the cash redemption of all outstanding convertible bonds within five business days after the redemption reference date.

(2) Suspension of Transfer Period for Convertible Bonds: Not applicable

(3) Notice and Redemption Application Period: July 27, 115 to August 27, 115

(4) Convertible Bond Redemption Reference Date: August 27, 115

(5) Termination Date of OTC Trading for Convertible Bonds: August 28, 115

(6) Date of Mailing Bond Redemption Notices via Registered Mail: July 24, 115

(7) Bond Redemption Procedures (1) For bonds deposited with the Taiwan Depository & Clearing Corporation: Bondholders may proceed with redemption through their brokerage firms from the start date of the redemption notice (July 27, 115) up to the business day before the expiration date (August 26, 115).

(8) Bondholders who wish to convert their bonds into common shares instead of redemption must complete the conversion process with their brokerage firm by August 26, 115 at the latest.

(9) Company Share Agency (address and phone): Mega Securities Co., Ltd., Address: 1F, No. 95, Sec. 2, Zhongxiao E. Rd., Taipei City 100, Taiwan, Phone: (02) 3393-0898.

Warning: Investors with conversion rights are advised that failure to submit a written conversion request by August 26, 115 will result in the company redeeming all bonds in cash at face value.