Letter To Shareholders - Mitac

1. Analysis of changes in percentage increases/decreases (changes less than 20% are
exempted):
(1) Sales return and allowance: Primarily due to the recession and the clearance sale
because of the stock clearance, the amount of the sales returns and allowances
increased in 2008. But it gets stable in 2009.
(2) Operating expenses: Mainly because the decline of the operating revenue, the
expenses declined as well.
(3)Operating income: Affected by the factors above.
(4)Non-operating income and gains: Mainly because the investment incomes decrease
from the equity assessment caused the decrease of non-operating income and gains.
(5) Non-operating expenses and losses: Mainly because the interest decreases,
non-operating expenses and losses decrease as well.
(6) Income before income tax and income tax expense: Affected by the factors above,
income before incomes tax decrease, income tax expenses decline as well.
(7) Net income from continuing operations: Also affected by the factors above.
2. Reasons for changing the company’s major businesses: The company did not change its
major businesses.
3. The forecasts for sales volumes and their evidence and the possible impacts and their
countermeasures:
Based on the strategic plans and assessments of the future environment made by the
company's management this year (2009), MiTAC shall focus on the growth of its three
main businesses: developing high value-adding navigation software and outdoor GPS
devices to achieve 2010 sales that surpass the previous year’s level. Target corporate
servers and storage devices to provide cloud computing solutions; introduce innovative
energy-saving servers, high-performance servers, and high performance computing
solutions; increase the market share and distribution network coverage of our TYAN
brand. As for client products, our efforts shall be focused on the development of
Internet-enabled GPS devices and thin clients’ computers, thereby enabling closer
technological association between cloud computing and MiTAC’s client products, as well
as market growth.
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