For many years we have exerted ourselves to the utmost to develop the national economy on behalf of the public. We have sought to achieve economic growth based on the concept of "equal emphasis on environmental protection and the economy". We have therefore made a number of advances in endpipe treatment as part of our environmental protection efforts, in order to conform to both present and future standards regarding pollution and discharge. We have worked to upgrade the level of environmental protection and reduce industrial pollution, while also seeking to progress from merely preventing pollution to following economically and environmentally sound procedures. As part of our environmental protection strategy, in June 1996 the company began promotion of ISO-14001 series activities, with the establishment of environmental management systems that conform to the ISO-14001 international standard. In September 1997, except for the Mailiao complex that was under construction, all of the company's six complexes successfully obtained ISO-14001 certification. In order to achieve our environmental protection goals, we have initiated a program to improve our methods of construction, resource recovery and environmental protection with the following detailed implementations:

1. Improvements in resource recovery and processes: we have raised the efficiency of utilization and recovery of by-products to reduce pollutants and achieve more rationalized production. This has always been our approach to business. In environmental protection, we have always been careful to apply rational evaluation of manufacturing processes and discharges of pollution, working towards the goal of zero pollution.

2. Environmental protection measures: we have installed more anti-pollution systems to reduce the impact of discharges on the environment. In light of the stringent pollution standards which we face today and in the future, we have also studied the efforts of the advanced nations of Europe, North America and Japan to improve current pollution treatment methods and bring pollution discharges of both existing and planned factories into line with all relevant national standards, or even better than the environmental standards of the advanced nations of Europe, North America and Japan. Protecting water resources is our responsibility. Besides making efforts to reduce waste, we regularly test water discharge to ensure that levels meet 1998 environmental standards.

Future pollution abatement strategies:

●Promote the concept that production and environmental protection are equally important.
●Strengthen process equipment control, promote industrial waste reduction, and reduce the amount of pollutant by process adjustments.
●Strengthen research and development, look for high efficiency, low polluting new process and pollution abatement technology.
●Strengthen process enclosing improvements, reduce emission discharge.
●Promote friendly relationship with neighboring residents, publicize the importance of the non-conflicting relationship between economic development and environmental protection.
●Continuously promote the ISO-14001 environmental management system and responsibility care system.