Article 1

The Standards have been drawn up in accordance with the provisions of Paragraph 2, Article 2 of

the Small and Medium-sized Enterprise Development Statute (hereinafter referred to as the

" Statute").

Article 2

The term "SME" as used in the Standards shall mean an enterprise which has completed company

registration or business registration in accordance with the requirements of the laws, and which

conforms to the following standards:

(1)The enterprise is an enterprise in the manufacturing, construction, mining or quarrying industry

with either paid-in capital of NT$80 million or less, or less than 200 regular employees.

(2)The enterprise is an enterprise in the industry other than any of those mentioned in the

ub-paragraph immediately above and either had its sales revenue of NT$100 million or less in the

previous year, or has less than 100 regular employees.

Article 3

The term "small-scale enterprise" as used in Paragraph 2, Article 4 of the Statute shall mean a SME

with less than 5 regular employees.

Article 4

The term "sales revenue" as used in the Standards shall be determined based on the figure as

approved by the tax authorities in the year immediately prior to the year of determination. If the

approval has not been given by the tax authorities, the determination shall be made in accordance

with the following provisions:

(1)Sales revenue shall be based on the operating revenue noted on the income tax declaration form

for the most recent year bearing the "Documents Received" seal of the tax authorities.

(2)If the enterprise is unable to obtain the document referred to in the Sub-paragraph immediately

above, sales revenue shall be based on the sales value noted on the sales and tax declaration form

for the full year of the most recent year, with commissioned sales and non-operating income

deducted.

(3)In the case of sale representatives required to pay business tax by the tax authorities according to

the laws, sales revenue shall be presumed to be NT$100 million or less.

If the enterprise was established in the previous year and less than one year has elapsed since

business registration, or if business registration took place in the current year, sales revenue for the

full year shall be calculated on the basis of the conversion from the figure already declared for each

period.

Article 5

The "number of regular employee" as used in the Standards shall be based on the average monthly

number of insured persons for whom labor insurance registration has been made with the Labor

Insurance agency for the Taiwan and Fukien Region in the most recent 12 months.

Article 6

An enterprises shall be deemed to be a SME if any of the following is applicable:

(1)In the case of a SME which has received guidance for expansion, where after expansion the size

of the enterprise exceeds the standards listed in Article 2, such enterprise shall continue to be

deemed to be a SME for two years immediately after the date of expansion.

(2)In the case of a SME which has received guidance for merger, where after the merger the size of

the enterprise exceeds the standards listed in Article 2, such enterprise shall continue to be deemed

to be a SME for three years immediately after the date of the merger.

(3)Where a guidance agency, guidance system or relevant agency undertakes the provision of

collective guidance for SMEs in a given industry, if some of the enterprises exceed the standards

listed in Article 2, and if the guidance agency, guidance system or relevant agency determines that

there is good reason for providing joint guidance, such enterprises shall be deemed to be SMEs

during the period of collective guidance.

Article 7

The Standards shall come into effect on the date of promulgation.