Acer 2006 Annual Report Download - page 48

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-91-
7.2.7 What are the predicted benefits and potential risks to the Company during the
mergers?
Not applicable.
7.2.8 What are the predicted benefits and potential risk to the Company when it
expands its factories and offices?
Not applicable.
7.2.9 What are the potential risks to the Company during buy and sales?
NONE
7.2.10 How shares transfer made by directors, supervisors or shareholders with 10%
or more shareholdings affect the Company?
Not applicable.
7.2.11 What are the impact and potential risks when the Company changes
management team?
Not applicable.
7.2.12 The major litigious, non-litigious or administrative disputes that: (1) involve
Acer and/or any Acer director, any Acer supervisor, the general manager, any
person with actual responsibility for the firm, any major shareholder holding a
stake of greater than 10 percent, and/or any company or companies controlled
by Acer; and (2) have been concluded by means of a final and unappealable
judgment, or are still under litigation. Where such a dispute could materially
affect shareholders' equity or the prices of the company's securities, the facts of
the dispute, amount of money at stake in the dispute, the date of litigation
commencement, the main parties to the dispute, and the status of the dispute as
of the date of printing of this annual report shall be disclosed as follows:
1. Hewlett-Packard Development Company filed patent infringement lawsiuts against
Acer Inc. and its US subsidiary, Acer America Corporation, with pending before the
United States District Court for the Eastern District of Texas and United States