Letter To Shareholders - Mitac

exceed the sum of retained earnings, paid-in capital in excess of par value and
realized capital reserve. As of December 31, 2009, the shares bought back as
treasury stock amounted to $256,417.
C. Pursuant to the R.O.C. Securities and Exchange Law, treasury stock should not
be pledged as collateral and is not entitled to dividends before it is reissued to the
employees.
D. Pursuant to the R.O.C. Securities and Exchange Law, treasury stocks should be
reissued to the employees within three years and shares not reissued within the
three-year period are to be retired. Treasury shares to enhance the Company’s
credit rating and the stockholder’s equity should be retired within six months of
acquisition.
E. As of December 31, 2009, the total number of the Company’s shares held by its
subsidiaries, Silver Star Developments Ltd., was 2, 764 (in thousand shares) with
an average book value of $77,002 and $27.86 (in dollars) per share and market
vaule of $27.86 (in dollars) per share.
F. As of December 31, 2009, the total number of the Company’s shares held by its
subsidiaries, Tsu Fung Investment Corp., was 20,366 (in thousand shares) with an
average book value of $276,084 and $13.56 (in dollars) per share and market
value of $16.55 (in dollars) per share.
G. In accordance with EITF-91-341, when the subsidiaries obtain cash dividends
from the Company, it should write off investment income and adjust capital
reserve-treasury stock transaction. As of December 31, 2009 and 2008, the
adjustment amount was $4,516 and $31,009, respectively.
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