Acer Gdr Reg S Regulatory News (ACID)

Subject: (Supplemental announcement dated March 24, 2016) Public disclose for GWI that its direct wholly-owned subsidiary, ALA, is merged into GWI.

Date of events:2016/05/24

Contents:

1.Type of merger/acquisition (e.g. merger, consolidation, spin-off, acquisition, or receiving assignment of shares): Merger

2.Date of occurrence of the event: 2016/05/24

3.Names of companies participating in the merger (e.g.name of the other company participating in the merger or consolidation, newly established company in a spin-off, acquired company, or company whose shares are taken assignment of):

Public disclose for Gateway, Inc. ("GWI") that its direct wholly-owned subsidiary, Acer Latin America, Inc. ("ALA"), is merged into GWI.

4.Counterparty (e.g.name of the other company participating in the merger or consolidation, company taking assignment of the spin-off, or counterparty

to the acquisition or assignment of shares): GWI and ALA

5.Relationship between the counterparty and the Company (investee company in which the Company has re-invested and has shareholding of XX%), and explanation of the reasons for the decision to acquire, or take assignment of the shares of, an affiliated enterprise or related person, and whether it will affect shareholders' equity:

ALA is a wholly-owned subsidiary of GWI.

6.Purpose/objective of the merger/acquisition:

To enhance operational efficiency and strengthen management over organization

7.Anticipated benefits of the merger/acquisition:

To improve management cost efficiency

8.Effect of the merger or consolidation on net worth per share and earnings per share: No effect

9.Share exchange ratio and basis of its calculation: Not applicable

10.Scheduled timetable for consummation: May 24, 2106

11.Matters related to assumption by the existing company or new company of rights and obligations of the extinguished (or spun-off) company:

GWI assumes all the assets, rights, and liabilities of ALA.

12.Basic information of companies participating in the merger:

Main business activities of GWI: investing business

Main business activities of ALA: Brand marketing

13.Matters related to the spin-off (including estimated value of the business and assets planned to be assigned to the existing company or new company; the total number and the types and volumes of the shares to be acquired by the split company or its shareholders; matters related to the reduction, if any, in capital of the split company) (note: not applicable other than where there is announcement of a spin-off): Not applicable

14.Conditions and restrictions on future transfers of shares resulting from the merger or acquisition: Not applicable

15.Other important stipulations: N/A

16.Do the directors have any objection to the present transaction?:

To supplement the announcement dated March 24, 2016.