ASE proposes all cash acquisition of all SPIL shares

ASE intends to to acquire all SPIL shares for NTD 55 per common share (or NTD 275 per American depositary share). If the transaction is fulfilled, SPIL will become a wholly-owned subsidiary of ASE. ASE will maintain SPIL’s separate legal entity status and retain SPIL’s legal entity name. According to the proposal all directors and management of SPIL will be retained and their current compensation and benefits maintained. SPIL’s current employee policies will be observed and all SPIL employees will be retained to ensure the protection of their labor rights. The proposal also calls for SPIL to terminate or cancel the Tsinghua deal and terminate any other transaction that will dilute SPIL’s shares.