Explain media reporting

Subject: Explain media reporting

Contents:

1.Date of occurrence of the event:2016/03/21

2.Company name: Hon Hai Precision Ind. Co. Ltd

3.Name of the reporting media: Economic Daily

4.Content of the report:

Hon Hai seeks to reduce price it pays for Sharp by 20%.

5.Countermeasures:

(1)Hon Hai and Sharp are currently discussing on the basis of practical principles, with the aim to reach a satisfactory agreement as soon as possible.

(2)Hon Hai does not comment on market speculation regarding the price reduction on the deal.