GOERTEK INC. 
By The Company and all members of the Board confirm that the information disclosed herein is true, accurate and complete, with no false or misleading statements or material omissions.
The announcement is made by GoerTek Inc. (hereinafter, the "Company" or "GoerTek ") in accordance with Chinese Corporate Law, Securities Law and the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and other related laws, rules and regulations, with respect to litigation proceedings between the Company and Knowles Corporation (hereinafter, "Knowles US") and Knowles Electronics (Suzhou) Co., Ltd. (Knowles' MEMS microphone manufacturer in China, hereinafter, "Knowles Suzhou").
There are existing patent disputes between the Company and Knowles. For details, please refer to the Company's litigation-related announcements dated as of June 28, 2013, July 13, 2013 and August 31, 2013, published on Securities Times, China Securities Daily and the website designated by the Company for information disclosure - www.cninfo.com.cn.
The Development of Proceedings and Outcome
1. On August 29, 2013, the Company received summon, order of appearance and complaint, etc. served by the Suzhou Intermediate People's Court, with respect to certain patent lawsuit filed by Knowles against the Company regarding Chinese patent ZL200580028321.1 (the "Knowles Chinese Patent"). GoerTek then filed a request to the Patent Reexamination Board for invalidation of the Knowles Chinese Patent. On March 5, 2014, the Patent Reexamination Board issued its decision on GoerTek's invalidation request (Determination No 22201), holding that all claims of the Knowles Chinese Patent are invalid. Pursuant to the decision of the Patent Reexamination Board and related laws, rules and regulations, GoerTek moved for dismissal of the action brought by Knowles in the Suzhou Intermediate People's Court.
On April 22, 2014, GoerTek received the Suzhou Intermediate People's Court's order [(2013) Su Zhong Zhi Min Chu Zi No. 0265] on its dismissal motion. In the order, the Suzhou court held that:
The ZL200580028321.1 patent, titled "A method of manufacturing a plurality of separate microphone package", which Knowles US asked for protection from infringement, has been declared invalid in its entirety, pursuant to Determination No. 22201 issued by the Patent Reexamination Board. Thus, the lawsuit brought by Knowles US, which was based on the ZL200580028321.1 patent, failed to meet the conditions established by Article 119 of the Civil Procedure Law, and thus, the complaint is dismissed. Knowles US may bring administrative proceedings regarding Determination No. 22201 issued by the Patent Reexamination Board. If Determination No. 2220 is repealed in the administrative proceedings, Knowles US may re-initiate patent infringement litigation. Accordingly, the Court orders the action brought by Knowles US dismissed, pursuant to Article 119 of the Civil Procedure Law.
If any party refuses to accept the order as final, it may submit petition for appeal to this court and appeal to the Jiangsu High People's Court, Knowles (the complaint) within 30 days after the date of service of this order, and GoerTek, Na Sun within 10 days after the date of delivery of this order.
2. On July 12, 2013, the Company received the Case Acceptance Notice from the Weifang Intermediate People's Court [(2013)No.:253、254、255、256、257] for the lawsuit filed by GoerTek against Weifang Sanlian Appliance Co., Ltd and Knowles Suzhou for infringement of GoerTek's patent nos. CN200820187748.7, CN201020515145.2, CN201020180613.5, CN200510115448.9, and CN201020001125.3. On April 22, 2014, the Company received an order of judgment regarding case no. 256 [(2013) Wei Zhi Chu Zi No. 256]. The order of judgment held that:
(1) Defendant Weifang Sanlian Appliance Co., Ltd shall immediately stop selling Samsung mobile phone model GT-I9500, which contains microphones infringing GoerTek's utility model patent no. CN200820187748.7;
(2)Defendant Knowles Electronics (Suzhou) Co., Ltd shall immediately stop manufacturing and selling microphone products infringing GoerTek's utility model patent no. CN200820187748.7;
(3) Defendant Knowles Electronics (Suzhou) Co., Ltd shall compensate GoerTek (the complainant)'s economic losses totaled RMB37,200,000.00.
(4) All other claims of complainant GoerTek are dismissed.
Should Knowles Electronics (Suzhou) Co., Ltd fail to fulfill its obligation of monetary payment within the time period prescribed by the law, the interests of payment shall be doubled during the period of delay in performance according to Article 253 of the Civil Procedure Law of the People's Republic of China.
The cost of this lawsuit is RMB 266,800, of which RMB 45,356 shall be paid by the Company, and RMB 221,444 shall be paid by Knowles Suzhou. The cost to preserve evidence is RMB 1,000 and the cost to preserve properties is RMB 5,000. Such RMB 6,000 shall be paid by Knowles Suzhou.
Either party that refuses to accept this judgment as final may appeal to Shandong High People's Court, by submitting an appeal through this court within 15 days of receiving this judgment.
Case Nos. 253, 254, 255 and 257 brought by the Company against Knowles Suzhou in the Weifang Intermediate People's Court are currently in process.
Summary of Other Undisclosed Litigations and Arbitrations
As of the date of this announcement, the Company and its subsidiaries are not involved in any other litigation or arbitration proceedings that are required to be disclosed.
The Possible Effects of the Litigations Disclosed in this Announcement on the Profits of the Company of Current Period and thereafter
It remains unclear what effects of the litigations disclosed in this announcement may have on the profits of the company of current period and thereafter. With respect to the development of the proceedings, the company shall ensure full compliance with the disclosure requirements and make such disclosures accordingly.
Documents available for inspection
3. Order from Suzhou Intermediate People's Court [(2013) Su Zhong Zhi Min Chu Zi No. 0265]
4. Judgment order from Weifang Intermediate People's Court re: Case No. 256 [(2013) Wei Zhi Chu Zi No. 256]
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