Announce the impairment of assets by applying IAS

Subject: Announce the impairment of assets by applying IAS No. 36

Date of events:2016/12/20

Contents:

1.Date of occurrence of the event:2016/12/20

2.Company name:Acer Inc.

3.Relationship to the Company (please enter "head office" or "subsidiaries"): head office

4.Reciprocal shareholding ratios:N/A

5.Cause of occurrence:N/A

6.Countermeasures:N/A

7.Any other matters that need to be specified:

Acer's press release:

Acer Announces Intangible Asset Impairment Charge to Address Development Needs of New Businesses Impairment charge estimated to be NT$6.34 billion with no impact on operations and cash

TAIPEI, TAIWAN (December 20, 2016) During the second half of 2016, Acer announced the establishment of its new businesses into an independent cash generating unit. The new setup addresses the diverse development needs of the new cloud-related business to encourage its entrepreneurship.

Acer's Board of Directors today agreed at a special meeting to take an impairment charge of approximately NT$6.34 billion. Once completed, the impact on earnings per share (EPS) is estimated to be NT$2.06 with net value per share at approximately NT$19. In addition, the action is expected to result in amortization expense reduction of approximately NT$230 million in 2017. The impairment charge will not impact the Company's operations and cash, while allowing the cloud-related business to expand.

The total estimated impairment charge of NT$ 6.34 billion is attributable to the cloud-related business's intangible assets of approximately NT$6.19 billion as well as those relating to Gateway and Packard Bell's trademark value of approximately NT$150 million. The figures will be reflected in Acer's 2016 Annual Report after the CPA auditing process and Board of Directors' approval. The intangible assets of the cloud-related businesses were mainly obtained in the acquisition of iGware in 2012 and Acer's impairment assessment was carried out in accordance with the provisions of the International Accounting Standard 36 (IAS 36).

There was no cash disbursement for this impairment. The cash position at the end of the third quarter this year amounts to NT$36.6 billion. Acer has not seen significant change compared to the end of November, and does not expect this impairment charge to result in any future cash expenditures or otherwise affect the ongoing business or financial performance.

Acer's Board of Directors also announced a contingency share buyback plan in case of abnormal stock price fluctuations, taking into consideration of the interests of shareholders.

The plan would involve up to 100,000,000 shares at an estimated purchase price per share ranging from NT$10 to 19.