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Description for being published on the Government Procurement Gazette

1. Date of occurrence of the event: 2017/07/19

2. Company name: Bright LED Electronics Corp.

3. Relationship to the Company (please enter ”head office” or ”subsidiaries”): head office

4. Reciprocal shareholding ratios: NA

5. Cause of occurrence: Construction Affairs Bureau, Taichung City Government release on the Government Procurement Gazette that BRTLED is suspended for 3 years for Taichung City LED street lights replacement project according to Government Procurement Act Article 103 by violating Article 101 Item 1 Paragraph 2 final part, Paragraph 4 and Paragraph 12.

6. Countermeasures: BRTLED has handled the procedure of stopping executing appeals from rulings to Taichung High Administrative Court on 2017/07/17, and filed for administrative suit during the statute of limitations.

7. Any other matters that need to be specified: Government procurement is not our major operation item; this event does not have a significant impact on our operation and consolidated income of the Group. Project revenue accounted for the proportion of consolidated revenue in 2016 and the first quarter of 2017 are 15.8% and 9.7%, respectively.