Formosa Oil Announces Penalty Imposed by Taichung City Government

1. Date of Incident: 115/07/09

2. Entity Involved: Our Company

3. Cause of Incident (Event Description): Benzopyrene (BaP) was detected in the product 'Grade 1 Soybean Oil' manufactured by Chung Lien Oils Co., Ltd., our contract manufacturing partner, which did not comply with regulatory standards. The Taichung City Government determined that our company had deficiencies, including delayed reporting, and accordingly imposed a fine of NT$3 million under Article 7, Paragraph 5 of the Food Safety and Sanitation Management Act.

4. Handling Process: We will implement relevant improvement measures based on the opinions of the competent authority.

5. Penalty Details: A fine of NT$3,000,000 has been imposed.

6. Was a monetary penalty imposed: Yes

7. Amount of Fine (NT$): NT$3,000,000

8. Estimated Potential Loss or Impact: NT$3,000,000

9. Amount Potentially Covered by Insurance (NT$): None

10. Improvement Status and Future Response Measures: The company will carry out improvement measures as directed by the competent authority. Business operations remain normal.

11. Has a material event regarding the same incident been previously disclosed: No

12. Other Matters to be Disclosed: None