Mosel-Vitelic removes sued chairman from director board

Taipei, May 25, 2005 (CENS)--Mosel-Vitelic Inc. recently notified its shareholders that it removed chairman H.C. Hu from the firm's board of directors because of the prosecution alleging he embezzled money when serving at another company as a financial executive.

New directors will be approved at a shareholders' conference to be held next month. Acting chairman, R.H. Situ, and acting president, S.J. Duan are expected to be accepted as new chairman and new president at the upcoming meeting. In addition to Situ and Duan, other director candidates include M.L. Chen, chairman of Mosel-Vitelic's affiliate ProMos Technologies and C.L. Peng, representative from institutional shareholder Mentec Investment Ltd. The company also puts two outside directors on the list.

Hu also leaves all of his posts at ProMos and ChipMos Technologies Ltd., Mosel-Vitelic's another affiliate. Nevertheless, Hu still retains 1.4% Mosel-Vitelic's ownership, still making him a major shareholder at the company.

In the notification to shareholders, Mosel-Vitelic also noted that its business ties with ProMos will end next year. ProMos has sold its chips through Mosel-Vitelic. Next year, the two companies will maintain only investor-and-the-invested relationship. At present, Mosel-Vitelic holds a 14% stake in ProMos. The percentage will pare down to 10% next year.

Although Mosel-Vitelic said the rewards to its directors and supervisors will be revised based on a flexible proportion principle from currently fixed 2%, all listed seven directors and two supervisors have vowed to give up the pays, totaling NT$46 million (US$1.48 million at US$1:NT$31) a year.

Hu was recently released from detaining after paying a bail of NT$120 million (US$3.8 million), the highest ever bail sum in Taiwan's legal history. He has been charged for allegedly stealing NT$17 billion (US$548 million) when serving as chief financial officer at Pacific Electric Wire and Cable several years ago.