On June 10, 2009, Unimicron Technology Corp.(hereinafter “Unimicron”) and Phoenix Precision technology Corp.(hereinafter “PPt”) decided the merger of the two companies through the resolutions of their respective board meetings. On October 30, 2009, Unimicron formally informed all PPt employees of the retention notices in accordance with the requirement of Article 16 of Business Acquisition and Merger Act R.O.C. Prior to the date of merger of December 1, 2009, Unimicron has held 14 sessions with PPt employees the differences pertaining to the salary structure, fringe benefit and other HR policies between the two companies so that they can decide to stay at Unimicron on not after the merger.

Early this year, some of PPt employees who selected not to stay in the company and asked Unimicron to pay to them the year end bonus of 2009. Such labor dispute has gained attentions of the media. However, through the intensive communications between two parties, the ex-employees finally understood and accepted that Unimicron did not violate the bylaws, and also agreed to jointly sign a letter for the media to clarify the whole event.

Furthermore, in the course of the negotiation, the Chairman of Unimicron Mr. Tseng expressed his attentiveness to all the ex-employees, and voluntarily offered those ex-employees who had excellent performance record at PPt to apply the job at the affiliate companies of Unimicron. With such a good faith response from the Chairman, the months long dispute was peacefully ended.

Human Resource Division
Mar. 18th, 2010