Nan Ya Corrects Announcement Dated 115/05/12 Regarding Fund Lending Exceeding 2% of Company's Net Worth

1. Factual Date: 115/05/12

2. Recipients of Fund Lending:

(1) Company Name: Taiwan Plastics Industry Co., Ltd. (2) Relationship with Lending Party: Corporate Director of the Company (3) Lending Limit (in thousand NT$): 95,956,567 (4) Previous Outstanding Balance (in thousand NT$): 3,000,000 (5) Amount of New Lending (in thousand NT$): 4,500,000 (6) Whether Board-Authorized for Chairman to Make Multiple or Revolving Loans to Same Recipient: No (7) Outstanding Balance as of Factual Date (in thousand NT$): 7,500,000 (8) Reason for New Lending: Working Capital

(1) Company Name: Taiwan Chemical Fiber Corporation (2) Relationship with Lending Party: Corporate Director of the Company (3) Lending Limit (in thousand NT$): 95,956,567 (4) Previous Outstanding Balance (in thousand NT$): 3,000,000 (5) Amount of New Lending (in thousand NT$): 4,500,000 (6) Whether Board-Authorized for Chairman to Make Multiple or Revolving Loans to Same Recipient: No (7) Outstanding Balance as of Factual Date (in thousand NT$): 7,500,000 (8) Reason for New Lending: Working Capital

(1) Company Name: Formosa Petrochemical Corporation (2) Relationship with Lending Party: Investee Accounted for Using Equity Method (3) Lending Limit (in thousand NT$): 95,956,567 (4) Previous Outstanding Balance (in thousand NT$): 3,000,000 (5) Amount of New Lending (in thousand NT$): 4,500,000 (6) Whether Board-Authorized for Chairman to Make Multiple or Revolving Loans to Same Recipient: No (7) Outstanding Balance as of Factual Date (in thousand NT$): 7,500,000 (8) Reason for New Lending: Working Capital

(1) Company Name: Formosa Heavy Industries Corporation (2) Relationship with Lending Party: Investee Accounted for Using Equity Method (3) Lending Limit (in thousand NT$): 95,956,567 (4) Previous Outstanding Balance (in thousand NT$): 3,800,000 (5) Amount of New Lending (in thousand NT$): 5,700,000 (6) Whether Board-Authorized for Chairman to Make Multiple or Revolving Loans to Same Recipient: No (7) Outstanding Balance as of Factual Date (in thousand NT$): 9,500,000 (8) Reason for New Lending: Working Capital

(1) Company Name: Formosa Construction Corporation (2) Relationship with Lending Party: Investee Accounted for Using Equity Method (3) Lending Limit (in thousand NT$): 95,956,567 (4) Previous Outstanding Balance (in thousand NT$): 100,000 (5) Amount of New Lending (in thousand NT$): 150,000 (6) Whether Board-Authorized for Chairman to Make Multiple or Revolving Loans to Same Recipient: No (7) Outstanding Balance as of Factual Date (in thousand NT$): 250,000 (8) Reason for New Lending: Working Capital

(1) Company Name: Nan Zhong Petrochemical Industry Co., Ltd. (2) Relationship with Lending Party: Subsidiary of the Company (3) Lending Limit (in thousand NT$): 95,956,567 (4) Previous Outstanding Balance (in thousand NT$): 300,000 (5) Amount of New Lending (in thousand NT$): 300,000 (6) Whether Board-Authorized for Chairman to Make Multiple or Revolving Loans to Same Recipient: No (7) Outstanding Balance as of Factual Date (in thousand NT$): 600,000 (8) Reason for New Lending: Working Capital

(1) Company Name: Taiwan Bicentennial Co., Ltd. (2) Relationship with Lending Party: Subsidiary of the Company (3) Lending Limit (in thousand NT$): 38,382,626 (4) Previous Outstanding Balance (in thousand NT$): 2,500,000 (5) Amount of New Lending (in thousand NT$): 2,500,000 (6) Whether Board-Authorized for Chairman to Make Multiple or Revolving Loans to Same Recipient: Yes (7) Outstanding Balance as of Factual Date (in thousand NT$): 5,000,000 (8) Reason for New Lending: Working Capital

3. Collateral Provided by Recipient Companies:

(1) Description: None (2) Value (in thousand NT$): 0

4. Latest Financial Statements of Recipient Companies:

(1) Capital (in thousand NT$): 243,923,640 (2) Accumulated Profit/Loss (in thousand NT$): 161,779,032

5. Interest Calculation Method: Daily Basis

6. Repayment Terms:

(1) Conditions: One-year loan term; borrower may repay at any time (2) Date: Undetermined

7. Total Outstanding Fund Lending as of Factual Date (in thousand NT$): 55,466,485

8. Ratio of Outstanding Fund Lending to Net Worth in Latest Financial Statements of Public Company: 14.45

9. Source of Lending Funds: Other

10. Other Disclosures:

1. Source of Funds: Company's own internal funds 2. The fund lending reported herein represents only the amount approved by the board for potential disbursement; actual disbursement has not yet occurred. The revolving credit line of NT$2.5 billion to Taiwan Bicentennial will be available from June 1, 115 to December 31, 115. 3. Capital of Recipient Companies in Latest Financial Statements (in thousand NT$): (1) Formosa Plastics: 63,657,408 (2) Formosa Chemical: 58,611,863 (3) Petrochemical: 95,259,597 (4) Heavy Industries: 20,094,772 (5) Formosa Construction: 3,300,000 (6) Nan Zhong Petrochemical: 2,000,000 (7) Taiwan Bicentennial: 1,000,000

4. Accumulated Profit/Loss of Recipient Companies in Latest Financial Statements (in thousand NT$): (1) Formosa Plastics: 30,085,826 (2) Formosa Chemical: 37,293,602 (3) Petrochemical: 103,061,989 (4) Heavy Industries: -7,231,334 (5) Formosa Construction: -114,749 (6) Nan Zhong Petrochemical: -868,380 (7) Taiwan Bicentennial: -447,922