ASIA OPTICAL

Investor Conference

October 20th, 2005

2

Agenda• Welcome

• 3Q05 Financial Results – Consolidated

• Q & A

* Unaudited financial data

3

3Q05 Result Highlights - ConsolidatedAmount: NT$ million 01~09 '05 01~09 '04 YoY

Amount Amount %Net Sales * 23,947.91 18,952.63 26 % Income before Incmoe Tax * 2,090.83 1,705.20 23 %

EPS (NT$) - pre tax 8.91 8.91 0 %

EPS (NT$) - after tax 8.78 9.04 -3 %

Cash and S-T Investment * 5,117.85 5,050.45 1 % Interest-bearing Debts * 3,617.56 5,072.15 -29 %

　 Net Cash Reserve 1,500.29 (21.70)

Working Capital * 6,443.34 6,930.50 -7 % Shareholder's Equity - net 12,104.74 9,138.61 32 %

*　unaudited　financila　data.

4

Consolidated Income Statement - YoYAmount: NT$ million 01~09 '05 * 01~09 '04 * YoY

Amount % Amount % %Net Sales 23,947.91 100.0 18,952.63 100.0 26 % COGS (20,779.19) (86.8) (16,432.09) (86.7) 26 % Gross Profit 3,168.72 13.2 2,520.54 13.3 26 % Operating Expense (1,123.26) (4.7) (948.59) (5.0) 18 % Operating Income 2,045.46 8.5 1,571.95 8.3 30 % Net Non-operating Income (Exp.) 45.37 0.2 133.25 0.7 -66 % Income Before Tax 2,090.83 8.7 1,705.20 9.0 23 % Income Tax Credit (Exp.) (89.72) (0.4) 18.20 0.1 -593 % Minority Interest Loss (Income) (19.84) (0.1) 15.59 0.1 -227 % Net Income 1,981.27 8.3 1,738.99 9.2 14 %

EPS (NT$) - pre tax 8.91 8.91EPS (NT$) - after tax 8.78 9.04

* Unaudited financial data

5

Consolidated Income Statement - QoQAmount: NT$ million 3Q '05 * 2Q '05 1Q '05 * Q3oQ2 Q2oQ1

Amount % Amount % Amount % % %Net Sales 9,344.15 100.0 7,990.46 100.0 6,613.30 100.0 17 % 21 % COGS (8,056.65) (86.2) (6,934.69) (86.8) (5,787.85) (87.5) 16 % 20 % Gross Profit 1,287.50 13.8 1,055.77 13.2 825.45 12.5 22 % 28 % Operating Expense (384.10) (4.1) (389.64) (4.9) (349.52) (5.3) -1 % 11 % Operating Income 903.40 9.7 666.13 8.3 475.93 7.2 36 % 40 % Net Non-operating Income (Exp.) 64.01 0.7 23.83 0.3 (42.47) (0.6) 169 % -156 % Income Before Tax 967.41 10.4 689.96 8.6 433.46 6.6 40 % 59 % Income Tax Credit (Exp.) (76.18) (0.8) (9.43) (0.1) (4.11) (0.1) 708 % 129 % Minority Interest Loss (Income) (1.08) (0.0) (15.92) (0.2) (2.84) (0.0) -93 % 461 % Net Income 890.15 9.5 664.61 8.3 426.51 6.4 34 % 56 %

EPS (NT$) - pre tax 4.09 2.92 1.90EPS (NT$) - after tax 3.92 2.95 1.91

* Unaudited financial data

6

Consolidated Income Statement - QoQAmount: NT$ million 3Q '05 * 3Q '04 * QoQ

Amount % Amount % %Net Sales 9,344.15 100.0 7,487.89 100.0 25 % COGS (8,056.65) (86.2) (6,442.92) (86.0) 25 % Gross Profit 1,287.50 13.8 1,044.97 14.0 23 % Operating Expense (384.10) (4.1) (312.59) (4.2) 23 % Operating Income 903.40 9.7 732.38 9.8 23 % Net Non-operating Income (Exp.) 64.01 0.7 41.98 0.6 52 % Income before Tax 967.41 10.4 774.36 10.3 25 % Income Tax Credit (Exp.) (76.18) (0.8) 6.09 0.1 -1351 % Minority Interest Loss (Income) (1.08) (0.0) 2.45 0.0 -144 % Net Income 890.15 9.5 782.90 10.5 14 %

EPS (NT$) - pre tax 4.09 3.97EPS (NT$) - after tax 3.92 4.03

* Unaudited financial data

7

Safe Harbor NoticeWe have made forward-looking statements in the presentation. Our forward-looking statements contain information regarding, among other things, our financial conditions, future expansion plans and business strategies. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that these expectations and projections are reasonable, such forward-looking statements are inherently subject to risks, uncertainties, and assumptions about us.

We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in the conference might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

8

Thank you