Lite-On Technology Corp. (TW 2301) today announced that its product manufacturing and sales risk performance has passed the most credible auditing and certification system in the world: ACE’s certification. Lite-On Tech’s Changan factory obtained the first Product Liability Insurance AAA Certification in 2010, followed by certification obtainment in five more factories: three in 2011 (Power Changzhou, Power Guangzhou and Opto Tianjin), and two in 2012 (Opto Changzhou and PID Changzhou). Lite-On Tech is the first enterprise in Taiwan to achieve such recognition for three consecutive years at various factories.
     Lite-On Tech has gradually set up its own risk management mechanism with assistance from AON Risk Solutions, implementing the Product Liability Insurance AAA loss control program from ACE Group, one of the largest insurance and re-insurance companies in the world. Lite-On Tech scored full marks in all 11 audit categories evalsuated by ACE Group, and being awarded with a Product Liability Insurance AAA Certification means that Lite-On Tech has achieved the highest international standards in their product design and manufacturing, product safety, internal audit, and product liability risk management.
     ACE Group expressed that Lite-On Tech’s obtainment of Product Liability Insurance AAA Certification for three consecutive years in various factories represented a significant new milestone in its product liability risks management competence. With the trend of globalization and increasing consumer claims awareness, product manufacturers and suppliers will be confronted with the harsher challenges of product liability risks. For the sake of pursuing operational safety and developing sustainable management, enterprise operations and management must pay more attention to product liability risk management, and establish effective loss control programs.

About Product Liability Insurance Certification
ACE Group, operating a property and casualty insurance business, has been actively promoting a “product liability risk management” service in order to assist enterprises in Taiwan with strengthening quality control during the product manufacturing process to facilitate management performance improvement. The Product Liability Insurance AAA Certification system promoted by ACE Group in Taiwan is designed with the highest international standards as the audit basis, and comprises 11 evalsuation categories. Any corporation that passes the audit including these 11 categories is awarded Product Liability Insurance AAA Certification, which is a significant recognition of the corporation’s product quality.
The 11 indicator items of the AAA certification evalsuation provided by ACE Group’s product liability risk management service include the following: (1) Management Responsibility；(2) Documentation and Procedures；(3) Product Design and Manufacture；(4) Product Instructions, Labeling, Warnings and Warranties；(5) External Document Control；(6) Product Traceability, Identification and Recall；(7) Self Auditing；(8) Product Liability Training；(9) Product Safety evalsuation and Testing；(10) Contractual Risk Transfer；(11) Data Collection and Analysis. One of the most important responsibilities of a property and casualty insurance company is to promptly provide reasonable claims service according to the conditions covered by the policy when the customer is at risk.
One of the service items of a property and casualty insurance company is to assist the business in establishing a “risk management mechanism” to enhance loss prevention and to reduce the probability of accidents. The abovementioned 11-certification-items list of the product liability risk program is one of the methods used in helping enterprises to strengthen their risk management program. ACE Group will continue to promote services related to product liability risk management in order to strengthen enterprise operational efficiency in Taiwan, and to upgrade product quality to the level of international market standards.

Contact:
Julia Wang Director,
Investor and Public Relations
Tel: +886-2-8798-2888
LiteOnTech.IR@yizhaojr.com