Announcement on behalf of Company subsidiary

SEQ_NO  1 Date of announcemen 2006/05/23 Time of announcementt   15:49:17
Subject

Clarify and Warning against erroneous Market Rumor

Date of events 2006/05/23 To which item it meets article 2 paragraph 48
Statement
1.Date of occurrence of the event:2006/05/23  
2.Name of the company:Hon Hai Precision Ind. Co., Ltd.  
3.Relationship to the company (listed company or affiliated 
company): listed company 4.The shareholding ratios of mutual holding:na 5.Cause of occurrence:na 6.Countermeasures:na 7.Any other matters that need to be specified:
I. Recently some medias and individuals had been continuously spreading fictitious rumors on the
linkage of some domestic political linked property
transaction to Company and/or Company Chairman, Mr.
Terry Gou. Such fictitious rumor has caused Company
as well as Mr. Gou personally frustration. It is a
long term policy that both Hon Hai and Mr. Gou never
involved in any political connected transactions. Company hereby officially and vehemently clarifies.
II. Hon Hai Precision Industry Company, Limited and CHENG UEI Precision
Industry Co.Ltd had been two independent company.
Aside from the fact that the Chairmen of both companies are brother, there is absolutely no basis for any linkage between the two firms; both has independent
product design, manufacturing, production, sales, marketing, financial, accounting ... there isn't even strategic alliance
or any type of joint venture between the two entities.
III. Hon Hai has always pride in its focus on operation and achievement in operational excellence. The company and management
had been devoting all efforts in increase shareholder value and
stakeholder value. Company reserves all rights to take full
legal action against any fictitious and damaging rumors aiming
to attack the company or management with ill intent to manipulate
security market. Sincerly Hon Hai Precision Industry Company,
Limited Chairman and CEO Terry Gou