News

Taipei, Taiwan, R.O.C.－August 23, 2016 Holy Stone Enterprise Co., Ltd. (Holy Stone) (TWSE: 3026) today announced that the subsidiary of the Company constituted in Samoa, Holy Stone Holdings Co., Ltd (hereinafter “Holding”), has reached a plea agreement (hereinafter the “Agreement”) with the United States Department of Justice (hereinafter “DOJ”), on behalf of its former Japanese subsidiary Holy Stone Polytech Co., Ltd. (hereinafter “HPC”), for violation of the United States antitrust laws relating to the sale of Tantalum Capacitors.

The Company and Holding were not involved in, were unaware of, and deeply regret the conduct of certain of its former Japanese subsidiary HPC’s employees that lead to Holding’s agreement with DOJ. After consulting with legal counsels and considering the entire situation, Holding accepted the Agreement on behalf of its former Japanese subsidiary in order to protect the best interest of the Company. Under the terms of the Agreement, Holding will pay a fine of USD 600,000 and will continue to cooperate with DOJ’s ongoing investigation.

The above cost has been recorded in 2016. Therefore, the execution of the Agreement will not cause material impact on the finance and business of the Company.