Letter To Shareholders - Mitac

3.3.5 Internal control system
1. Declaration of internal control System
Declaration of the Internal Control System
Date: April 22, 2010
The company has the following declaration made for the internal control system valued in
the period of January 1 and December 31, 2008:
1. The company is aware that internal control system is the Board of Directors and the
management’s responsibility to establish, enforce, and maintain. The company has
systems set up to reasonably assure the operating effectiveness and efficiency in
profitability, performance, and assets safety, the reliability of financial statements and
regulation.
2. The internal control system has its limitations; no matter how perfect an internal control
system is designed, an effective system provides only a reasonable assurance of the
aforementioned three objectives. Moreover, the effectiveness of the internal control
system may be affected by the change of environment and situation. The company’s
internal control system has a self-supervision mechanism; therefore, the company is able
to act immediately once any nonconformity is identified.
3. The Company evaluates the design and operating effectiveness of its internal control
system based on the criteria provided in the “Regulations Governing Establishment of
Internal Control Systems by Public Companies” (hereinafter, the “Regulations”). The
criteria adopted by the Regulations identify five constituent elements of internal control
based on the process of management control: (1) control environment, (2) risk
assessment, (3) control activities, (4) information and communication, and (5)
monitoring. Each constituent element further contains several items. Please refer to the
Regulations for details.
4. The company has applied the aforementioned internal control criteria to examine the
design and performance of the system.
5. Based on the findings of the evaluation mentioned on Dec,31 2009, the Company
believes that, during the year 2009, its internal control system (including its supervision
of subsidiaries), as well as its internal controls to monitor the achievement of its
objectives concerning operational effectiveness and efficiency, reliability of financial
reporting, and compliance with applicable laws and regulations, were effective in design
and operation, and reasonably assured the achievement of the achievement of the
above-stated objectives.
6. The declaration will be included in the annual report and all information will be released
to the public. Any false-hood or concealment will cause a violation against Article 20,
Article 32, Article 171, and Article 174 of Securities and Exchange Law and will be held
responsible by law.
7. The Board of Directors approved the declaration unanimously on April 22, 2010 in the
presence of five directors.
MiTAC International Corp.
Chairman : Matthew Miau
President : Billy Ho
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