Merger involves Mainland China Subsidiaries

Subject: Merger involves Mainland China Subsidiaries

Contents:

1. Kind of merger/acquisition (e.g.merger, consolidation, spin-off,acquisition, or receiving assignment of shares):Merger

2. Date of occurrence of the event:2013/05/14

3. Names of companies participating in the merger (e.g.name of the other company participating in the merger or consolidation, newly established company in a spin-off, acquired company, or company whose shares are taken assignment of):

Company's Mainland China subsidiary,Foxconn Precision Electronics ( Yantai ) Co., Ltd. merged with Company's another Mainland China subsidiary,Fu Tai Kang Electronics Development (Yantai) Ltd.

4.Relationship between the counterparty and the Company (investee company in which the Company has re-invested and has shareholding of XX%), and explanation of the reasons for the decision to acquire, or take assignment of the shares of, an affiliated enterprise or related person, and whether it will affect shareholders' equity:

Both are Company's 100% owned subsidiaries. no effect on equity.

5. Purpose/objective of the merger/ acquisitionation: Operation requirement.

6. Anticipated benefits of the merger/acquisition:

Lowering overhead cost and increase operation efficiency.

7. Share exchange ratio and basis of its calculation: 1 on 1

8. Scheduled timetable for consummation: 2014

9. Matters related to assumption by the existing company or new company of rights and obligations of the extinguished (or spun-off) company:

Foxconn Precision Electronics ( Yantai ) Co., Ltd. as the surviving entity will assume all Fu Tai Kang Electronics Development (Yantai) Ltd.asset and liability.

10. Basic information of companies participating in the merger:

Foxconn Precision Electronics ( Yantai ) Co., Ltd.:

Manufacturing and marketing of computer components, comput

Fu Tai Kang Electronics Development (Yantai) Ltd.:

Marketing of Computer Chasis and Metal Stamping Parts