Elan Electronics Loses First-Instance Patent Infringement Lawsuit Against FocalTech

Release Date: 1150812 Statement Date: 1150811 Statement Time: 182703 Company Code: 2458 Company Name: Elan Subject: Judgment by the Intellectual Property and Commercial Court in Elan Electronics' patent infringement lawsuit against FocalTech Electronics, Ltd., et al. Applicable Clause: Clause 2 Event Date: 1150811 Details: 1. Parties to the Legal Case: Plaintiff: Elan Microelectronics Corp. Defendants: FocalTech Electronics Corp., FOCALTECH ELECTRONICS, LTD. (Cayman Islands), FOCALTECH SYSTEMS, LTD. (Cayman Islands)

2. Court or Authority Handling the Case: Intellectual Property and Commercial Court

3. Case Number: 115nd Min-Zhuan-Su No. 4, Intellectual Property and Commercial Court

4. Event Date: 115/08/11

5. Background (Including Subject of Litigation): On September 1, 114, Elan Microelectronics Corp. filed a civil lawsuit at the Intellectual Property and Commercial Court against FocalTech Electronics Corp. (hereinafter: FocalTech) and FOCALTECH ELECTRONICS, LTD. and FOCALTECH SYSTEMS, LTD. (collectively: Cayman FocalTech), alleging that the self-mutual capacitance sensing method used in the capacitive touchpads manufactured and sold by FocalTech and Cayman FocalTech infringes Elan's Republic of China invention patent No. I425402.

6. Proceedings: Today (the 11th), the Company received notice from its legal counsel that the Intellectual Property and Commercial Court has ruled in the first instance to dismiss the plaintiff's claim and motion for provisional enforcement. Although the outcome is not as expected, the Company bears no liability for damages and there is no significant impact on its financial condition or business operations. Upon receipt of the judgment, the Company will engage professional intellectual property attorneys to evaluate subsequent remedies to safeguard the interests of the Company and its shareholders.

7. Impact on the Company's Financials and Business Operations, and Estimated Amount: None

8. Response Measures and Improvements: None

9. Other Matters to be Disclosed (If the entity involved in the event or resolution is a publicly issued company or above, this major information also qualifies under Article 7, Paragraph 2 of the Enforcement Rules of the Securities Trading Act as a matter having significant impact on shareholder rights or securities prices): The Company announces this in accordance with relevant regulations on disclosure of material information.