HTC : Board of Directors Approved the Capital Reduction due to Cancellation of Restricted Employee Shares

1.Date of the board of directors resolution:2017/07/28

2.Reason for the capital reduction:

As the vesting conditions of the issuance of restricted employee shares

have not been met by the intended employee, HTC will withdraw issuance

to such employee without compensation and cancel 267,550 shares.

3.Amount of the capital reduction:NTD $2,675,500

4.Cancelled shares:267,550 shares

5.Capital reduction ratio:0.0326%

6.Share capital after the capital reduction:NTD$8,215,276,050

7.Scheduled date of the shareholders' meeting:N/A

8.Estimate listed common shares after the capital reduction:N/A

9.The estimate ratio of listed shares to the company's issued

common shares, after the capital reduction:N/A

10.Countermeasures of the lower circulation in shareholding,

if the aforesaid estimate listed common shares does not

reach 60 million shares and the ration does not reach 25%

after the capital reduction:N/A

11.Any other matters that need to be specified:

Record date for capital reduction is July 28, 2017