Board’s announcement

Release Date: 2007/12/25

At a board meeting held on December 25, 2007, Gintech Energy Corporation's Board of Directors agreed that Gintech founder C.T. Kuo would take over as chairman.

Mr. C.T. Kuo was formerly chairman of Chinese Petroleum Corporation (CPC). He founded Gintech Energy Corporation two years ago, and currently holds the position of chairman of Kuokuang Petrochemical Technology Co., Ltd.

While serving as chairman of CPC, Mr. C.T. Kuo worked actively to improve every aspect of the company's operations and to introduce best-practice management methods. During his tenure as chairman, CPC saw a significant improvement in its performance, whether in terms of industrial safety, oil exploration, refining, petrochemical manufacturing, marketing or service. CPC's annual sales revenue, which stood at just over NT$400 billion when Mr. Kuo took over as chairman, rose at a rate of approximately NT$100 billion per year to reach NT$700 billion, making CPC Taiwan's largest manufacturing enterprise and one of the 500 largest in the world. Thanks to the first-class service that Mr. Kuo established, CPC was able to maintain a market share of 70% in the Taiwanese domestic market even after the liberalization of the petroleum market. As part of his restructuring initiatives and strategy innovation, Mr. Kuo formulated long-term development strategies for every aspect of CPC's activities, including the stepping up of overseas oil exploration, restructuring of the company's oil refining operations, overhauling the Number Three Naphtha Cracker to boost petrochemical production capacity, the signing of a 25-year oil supply agreement with Qatar, and the construction of an LNG import terminal in Taichung Harbor. These major projects, implementation of which is currently underway, are establishing a solid foundation that will enable CPC to maintain its competitive advantage over the long term.

Mr. C.T. Kuo took up the position of chairman at Kuokuang Petrochemical Technology Co., Ltd. in January 2006. CPC holds a 43% share in Kuokuang Petrochemical Technology; the remaining 57% is held by a group of private-sector mid- and downstream petrochemical manufacturers. Kuokuang Petrochemical Technology is preparing to invest NT$500 billion in the establishment of a petroleum and petrochemical technology park in central Taiwan that will integrate up-, mid- and downstream production. This new facility is scheduled to begin operations in 2015. Annual production volume will exceed NT$650 billion, and the park will create 7,000 to 20,000 new jobs. The project is currently undergoing environmental impact appraisal.

When Mr. C.T. Kuo became chairman of CPC, the international oil price stood at US$25 per barrel. When he left CPC four years later, the price of oil rose to US$75 per barrel. Taiwan is dependent on imports for 100% of its crude oil needs; recognizing how dangerous this high degree of dependency on expensive imported energy is, Mr. C.T. Kuo decided that he would dedicate himself to the development of alternative energy sources, particularly solar energy. This decision led to the establishment of Gintech Energy Corp. in 2005. Gintech's annual solar cell production capacity currently stands at 210MW, and will rise to 560MW in 2008.

Gintech's board of directors has already decided that, as of December 26, 2007, C.T. Kuo would take over as company chairman. The board anticipates that, given Mr. Kuo's extensive experience in the energy sector and his proven leadership abilities, he will succeed in taking Gintech into the ranks of the world's top five solar cell manufacturers within the next three years.