Formosa Petrochemical Corporation announced that Tainan Environmental Protection Bureau imposed NTD 3 million penalty on it, in accordance with Article 52 of the Waste Disposal Act. Cause of occurance: Tainan EPB determined that the bottom ash generated from Circulating Fluidized Bed Boilers (CFB) which used in Madou Guan Hui and Zuojhen Hong Sheng sand and gravel storage fields were Waste after the inspection on 24 January 2013 (While the object were legitimately registered as Products by Yunlin County Government); Tainan EPB again imposed the company in the amount of NTD 3 million for the reason that there is no improvement within a limited time period, and ask the company to improve within a limited time period. The Company will file the administrative remedy and pay the fine within the legal time period in advance. Anticipated possible loss is of NTD 3 million.