Taiwan Stock Exchange Encourages Taiwan Firms in Malaysia to Raise Funds at Home

KUALA LUMPUR, Malaysia--(Business Wire)--
Dr. Rong-I Wu, Chairman of the Taiwan Stock Exchange Corporation,
hosted a media roundtable today to share the exchange's plans to
attract Taiwan companies based overseas to raise funds in Taiwan. Dr.
Wu will return to Taiwan today, whereas other staff from the bourse's
team will visit Penang afterwards to continue their campaign.

"Taiwan is an ideal place for overseas Taiwan companies to raise
funds. Malaysia-based Taiwan companies could consider listing in
Taiwan, which brings mutual benefits to Malaysia and Taiwan," Dr. Wu
said.

Taiwan and Malaysia as mutual benefactors

Taiwan is the 3rd largest investor in Malaysia, where Chinese is
widely spoken. Most of the investments are in the electronics and
electrical, wood-based, food and textile sectors. Companies such as
Acer, Chunghwa Picture Tube, China Steel Corporation and BenQ are
well-known investors into Malaysia's economy. As of December 2007,
Taiwan corporations comprise the 3rd largest investor in Malaysia,
investing up to USD 9.87 billion in 2,218 projects. In addition to
creating employment opportunities; these companies also transferred
their technological know-how through the establishing of Malaysian
joint ventures.

"Successful fund raising in Taiwan can help companies expand their
operations in Malaysia, where they will enjoy the advantage of
abundance of skilled labour and natural resources," Dr. Wu explained.

"On the other hand, the Taiwan capital market will benefit from a
pipeline of new listings, giving investors the opportunities to
capture the returns of successful overseas Taiwan businesses." Dr. Wu
said.

Taiwan as a buoyant capital market

Companies listed in Taiwan enjoy higher multiples, higher
liquidity and greater international exposure. The average
Price-to-earnings (P/E) ratio in Taiwan is 15.4, which is relatively
high in Southeast Asia. The turnover of Taiwan stocks in 2007 is 178%,
two times greater than that of Hong Kong, which came second at 75%.
Trading volume of Taiwan stocks in 2007 stood high at US$1.28
trillion. High liquidity in Taiwan gives listed firms the
opportunities to raise capital through successful offerings in the
secondary market.

Attracted by its industries, foreign investors take a strong
interest in the Taiwan market. As at the end of December 2007, foreign
shareholding is 33.2% of total shareholding, and foreign investors
account for 19.7% of total trading. The exposure to international
investors not only helps diversify the company's shareholding
structure, but also helps a company build its reputation
internationally.

Improving market sentiment on Taiwan capital market after the
recent election

Taiwan capital market continues to move up after its democratic
presidential election in March. The new government is expected to push
for closer economic cooperation between China and Taiwan. Taiwan's
export-oriented economy is seen as shrugging off the US slowdown in
2008 on domestic political stability and growing consumer and business
confidence. This is expected to result in more international capital
flow into Taiwan which benefits companies listed or planning to list
in Taiwan.

Successful market reforms to open up Taiwan capital market

Taiwan Stock Exchange is successfully pushing market reforms in
trading infrastructure to make Taiwan a regional financial hub. Apart
from the aggressive campaign to pitch for listings by overseas
companies and signing cooperation agreements with other exchanges,
Taiwan Stock Exchange is also pushing for relaxations in listing
requirements.

During the visit in Kuala Lumpur, Dr. Wu has hosted a symposium
with the business leaders of Taiwanese corporations in Malaysia, where
he talked about the development of the international securities
market, Taiwan market's positioning within the region, the advantages
of listing in Taiwan and the efforts the exchange and the government
had paid in attracting overseas corporations to list in Taiwan.

"With our continuous efforts to reform, we see a very positive
outlook in Taiwan in the coming years. We are hoping to say "Welcome
Home" to overseas Taiwan corporations very soon," Dr. Wu said.

About Taiwan Stock Exchange Corporation

Founded in 1961, TSEC works with the Financial Supervisory
Commission (FSC) to regulate Taiwan's stock market, enhance market
transparency and improve market infrastructure. It currently offers
trading markets for stocks, warrants, Exchange-Traded Funds (ETFs),
Taiwan Depository Receipts (TDRs) and corporate bonds.

About requirements for primary listing in Taiwan for overseas
corporations

1. Only requires due diligence of documents: On-site due diligence
is currently required for the IPO of domestic companies.

2. Primary Listing (IPO) Enabled: Most overseas corporations
listed by issuing Taiwan Depository Receipts (TDRs) in the past. Upon
amendment of relevant statutes, overseas companies will be allowed to
launch primary listings, a much simplified process.

3. Requirement of 3 years operation history: if company A from
Malaysia wishes to list in Taiwan, it may establish a holding company
B (in places such as the Cayman Islands) and list company B. There is
no operation history requirement for company B, as long as the
subsidiary company, Company A, has operated more than 3 years.

4. Two sets of requirements available: originally, a company must
have at least NTD 600 mln (USD 20 mln) paid-in capital in order to
list. Under the new regulations, those smaller companies unable to
fulfill this requirement may fulfill an alternative requirement by
market cap at least USD 50 mln at the IPO. Thus, a company with a
total 20 mln shares setting the offering price at USD 3 will be able
to fulfill the listing criteria.

5. Profit test: it is required that the company record at a
minimum profit of an aggregated NTD 250 mln (USD 8 mln) within the
most recent 3 fiscal years, and a minimum profit of NTD 120 mln (USD 4
mln) in the most recent fiscal year.

6. Accounting standards: overseas companies may follow the Taiwan
GAAP, the US GAAP or the IFRS. For accounting principles other than
the Taiwan GAAP, the major differences in items and amount should be
disclosed. Audit may be done by foreign accountants, but the listing
company must gain the signed certification by a Taiwan accountant.

7. The listing company must undergo counseling by the underwriter
or list on the emerging market for a period of 6 months.

8. Funds raised will be denominated in NTD.

9. Upon the due diligence process, the company will be listed in
accordance to its sector.

Taiwan Stock Exchange Corporation
Listing Promotion Department
Pei-Jing Kao, Junior Associate, +886-2-81013707
1090@tse.com.tw

Copyright Business Wire 2008