Google and HTC Announce $1.1 Billion Cooperation Agreement

Google and HTC Corporation (TWSE: 2489) today announced a definitive agreement
under which certain HTC employees – many of whom are already working with Google to develop
Pixel smartphones – will join Google. HTC will receive US$1.1 billion in cash from Google as part
of the transaction. Separately, Google will receive a non-exclusive license for HTC intellectual
property (IP).

The agreement is a testament to the decade-long strategic relationship between HTC and Google
around the development of premium smartphones.

This agreement also supports HTC’s continued branded smartphone strategy, enabling a more
streamlined product portfolio, greater operational efficiency and financial flexibility. HTC will
continue to have best-in-class engineering talent, which is currently working on the next flagship
phone, following the successful launch of the HTC U11 earlier this year. HTC will also continue to
build the virtual reality ecosystem to grow its VIVE business, while investing in other nextgeneration
technologies, including the Internet of Things, augmented reality and artificial
intelligence.

For Google, this agreement further reinforces its commitment to smartphones and overall
investment in its emerging hardware business. In addition to the talented and experienced team
of professionals, Google will continue to have access to HTC’s IP to support the Pixel
smartphone family. Additionally, this agreement also represents a significant investment by
Google in Taiwan as a key innovation and technology hub.

“As a pioneer of the smartphone market, we are very proud of our history of innovation. Our
unmatched smartphone value chain, including our IP portfolio, and world-class talent and system
integration capabilities, have supported Google in bolstering the Android market,” said Cher
Wang, Chairwoman and CEO of HTC. “This agreement is a brilliant next step in our longstanding
partnership, enabling Google to supercharge their hardware business while ensuring continued
innovation within our HTC smartphone and VIVE virtual reality businesses. We believe HTC is
well positioned to maintain our rich legacy of innovation and realize the potential of a new
generation of connected products and services.”

“HTC has been a longtime partner of Google and has created some of the most beautiful,
premium devices on the market,” said Rick Osterloh, Senior Vice President of Hardware at
Google. “We're excited and can't wait to welcome members of the HTC team who will be joining
Google to fuel further innovation and future product development in consumer hardware.”
The transaction, which is subject to regulatory approvals and customary closing conditions, is
expected to close by early 2018.