Acer announcement

Subject : Announcement of the unrealized loss resulted from

derivative financial products

Date of events : 2018/12/30

Statement :

1.Type of contract:Convertible Bond

2.Date of occurrence of the event:2018/12/30

3.Contract amount:NT$239M

4.Amount of margin paid:None

5.Ceiling on losses on aggregate or individual contracts set forth

in the Handling Procedures:Ceiling on losses on individual contracts is

NT$60M in accordance with Acer's Procedures

6.Reason for the transaction held (for trading or for helding):For trading

7.Where the transaction was for hedging, the item being hedged:NA

8.Where the transaction was for hedging, the amount of the

hedged position:NA

9.Where the transaction was for hedging, the gain or loss of

the item being hedged:NA

10.The loss (including realized and unrealized) measured to

the fair value:Estimated loss is NT$233M

11.Reason for occurrence of the loss and the impact to the company:

The investee (Starbreeze) applied reorganization and got the approval from

the District Court because of a shortage of liquidity.

Acer assessed the fair value of the convertible bond and recognized

unrealized loss.

Acer is discussing with Starbreeze and the Administrator for any possible

settlement plan to minimize the loss.

12.Contract period:2015/9/12~2019/8/31

13.Restrictive covenants:None

14.Other important stipulations:

 (1)Conversion Price of this Convertible Bonds is SEK 17.82 per Starbreeze

B-share;

 (2)Annual fixed interest of 1%; the loan will be repaid from 30th September

2018 with agreed quarterly payments.( SEK4,195K has been refunded)

15.Any other matters that need to be specified:None