Announcement on behalf of Company subsidiary

SEQ_NO  2 Date of announcemen  2005/10/17 Time of announcementt   20:17:48
Subject To refute erroneous article on company CEO owns chunghwa picture tubes,
Ltd.("CPT") and Tatung Company stocks.
Date of events 2005/10/13 To which item it meets article 2 paragraph 31
Statement
1.Name of the reporting media:Next Magazine,  issue 229, page 34 to 40. 

2.Date of the report:2005/10/13
3.Content of the report:
  3.1. Page 34: ”..., to sell stakes of CPT and Tatung to Terry
Gou ...,Terry intends to control Tatung, ... ”
  3.2. Page 35: ”..., intend to swallow Tatung and CPT is the Hon
Hai army of Terry Gou, ...”

  3.3. Page 36: ”..., to gradually transfer the block of CPT and
Tatung stocks to Hon Hai Chairman, Terry Gou ..., Gou had, thus, set up nominee accounts to buy these stakes....

  3.4 page 36...Terry also find these makes sense and thus start the planning, ... ” 3.5. Page 40: ”..., CPT was only a bait in her hand, ..., Terry Gou is interested, ...”

4.Summary of the information provided by investors:NA
5.Company's explanation of the reportage or provided information:
The company's CEO, Mr. Terry Gou, the company and all its affiliated and subsidiaries have not engaged in anything remotely close to what the aforementioned article claims nor ever foster any ambition in directing Tatung. Not to mention holds no Tatung and CPT stocks. Obviously, all the talks of nominee/dummy account purchases of CPT and Tatung stocks had been fabricated rumors. The article is fictitious. To prevent investing public from erroneous and misleading information, Company hereby vehemently clarifies the rumor.
6.Countermeasures:The Company reiterates aforementioned news are all false and reserves the right to take legal actions against the reporters and media.

7.Any other matters that need to be specified:NA