UMC
Announces Stock Option Plan and Share Buy-Back Program
Taipei, Taiwan, R.O.C. - August 12, 2002, - United
Microelectronics Corporation (TAIEX: 2303, NYSE: UMC), held a meeting
of the Board of Directors and Supervisors, at which the Board passed
a resolution to institute a stock option plan for its employees.
In addition, the Board passed a resolution to buy-back 20.693 million
shares from the open market. This is the fifth stock buy-back program
announced by the company. The details for the option program and
share buy-back are as follows:
A.
Stock Options Plan
| 1. |
The company will issue stock
options within one year of the approval by the relevant authorities,
and the Chairman will determine the issue. The options may be
issued a single time or incrementally during this period. |
| 2. |
The stock option plan applies
to employees of UMC and its domestic and overseas affiliate
companies. The number of options issued to an employee will
be determined by a number of factors, including seniority, rank,
and job performance.
|
| 3. |
The total number of options
to be issued is 1,000,000,000 (one billion). |
| 4. |
Each option certificate is equivalent
to one UMC common share. |
| 5. |
The settlement upon the exercise
of share options will be made through the issue of new shares. |
| 6. |
The strike price for the shares
is the market price at the time of issue and the vesting period
for employee options is 6 years. Employees may exercise up to
50% of the options after two years, up to 75% after three years
and up to 100% after 4 years. |
B.
The fifth share buy-back program
| 1. |
Purpose of the share
buy back: Bond conversion |
| 2. |
Expected dates of buy back:
Between August 12, 2002 and October 11, 2002. |
| 3. |
Number of shares: 20,693,000
shares |
| 4. |
Target price range
for buyback: NT$21 to NT$54. If the price falls below the lowest
range, the company is still authorized to purchase the shares. |
| 5. |
The shares will be purchased
from the open market. |
| 6. |
The number of shares to be
bought back is 0.16% of the total outstanding shares of the
company. |
| 7. |
The company currently holds
215,574,000 shares of its stock from the previous four stock
buyback programs. |
Contacts:
Chitung Liu / Ite
Pan
UMC, Investor Relations
(886) 2-2700-6999 ext. 6957
Chitung_Liu@umc.com
Ite_Pan@umc.com |
Luca Biondolillo
/ Susan Breakstone & Ruth
(646) 536-7012/ 18
Lbiondolillo@breakstoneruth.com
Sborinelli@breakstoneruth.com
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