Letter To Shareholders - Mitac

(a) Quality control system:
Succeeded a 3-year renewal of ISO 9001:2000 version, which was the foundation of the
development of the TL9000 management system; also, we obtained the certification of
communications products in the end of 2005.
(b) Environmental control system:
Completed ISO 14001:2000 version and OHSAS 18001:1999 auditing according to
the schedule. The IECQ QC080000 activity has been initiated since August, 2008. The
purpose of this activity reviews all functions of each department/responsible
departments/main operational procedures according to the IECQ directives. Therefore,
after the preliminary audit started, we were authorized by the IECQ in the U.S. to
delegate SGS for all examinations. We had a great outcome in the first stage in
September and SGS had audited other three stages and announced that MiTAC is
officially an organization that follows QC080000 (IECQ HSPM) on Dec. 7, 2006. We
dedicate ourselves to environmental protection and hope to find a balance between
business development and the ecosystem. Moreover, we realized that employees’
safety and health is a very important part of our enterprises. We will take every possible
measure to maintain a proper work environment. MiTAC commits ourselves to balance
between environmental protection requirements and company growth in order to have a
high standard ecosystem. We are to fulfill the social responsibility as a premium
enterprise and global citizen.
5.4.3 Countermeasures to RoHS
In response to the requirements of RoHS, MiTAC will educate our suppliers through
executing “Plan G” of the MOEA, R.O.C. We will require class 1 suppliers to be audited on
the premises to ensure that they follow the RoHS requirements. Some suppliers requested us
to provide information of MiTAC’s Class 2 suppliers regarding the follow-up of the RoHS
process. We believe that our management style of raw materials will reduce the risks of
violating the RoHS regulations from changing design and materials from the upstream
suppliers’ side.
MiTAC is taking advantage of the e- control of the supply chain to systemize the RoHS
reporting procedures and to solve the problems of multiple products, multiple production
sites, and multiple contact windows; moreover, the RoHS data exchange efficiency has
benefited from the new procedure.
Additionally, MiTAC has signed the XRF SEA1000A agreement with TechMaxAsia
Electron Technical Co., Ltd. in 2007 and purchased ICP facility and a fully-equipped
laboratory in order ensure all components from the suppliers are in compliance with RoHS.
5.4.4 Countermeasures of the impact on business from the EU environmental protection
directives
MiTAC achieved halogen free production in 2009, conducted testing on the suppliers'
supply of halogen free components, and successfully developed halogen free electronic
products. MiTAC continues to improve the ability to produce green products and export
them to Europe when necessary. As a result, there is no negative impact from EU’s
environmental directives at MiTAC.
5.4.5 MiTAC’s responses to environmental protection directives from the EU
From our observation of the environmental law development in the EU, the green
production has been changed from self claimer to a must; for instance, all countries in the
EU will have to finish all required implementation of 2010. MiTAC has listed DfE (Design
for Environment) and Eco-design to be our product design requirements last year. Currently,
our SOP in environmental design obliges our R&D departments to meet the EuP’s energy
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