Additional charges on Next Digital Ltd., Hong Kong

The company was invited to participate in 17th Annual Asian Technology Conference organized by Credit Suisse
September 7, 2016
To clarify the media report
September 23, 2016

1.Parties to the legal matter:OBI Pharma, Inc.
2.Name of the court or disposing agency:
(1) Shi Lin District Prosecutors Office (2) Taipei District Court
3.Reference/case numbers of relevant documents:Not available
4.Date of occurrence of the event:2016/09/08
5.Background and circumstances of the matter (including the property/subject matter under dispute):
(1) OBI Pharma, Inc. has filed criminal and civil lawsuits against Next Digital Ltd., Hong Kong
(”Next@Digital”) on 7 April 2016 and 3 May 2016, respectively, for its blatantly false reporting
about OBI Pharma. Next Digital has now decided to again use sensationalizing headlines as well as falsehoods and misleading reporting with the intention to slander and infringe upon the business  reputation of OBI Pharma, Inc.
(2) To protect the rights of OBI Pharma, Inc., additional complaints and facts surrounding Next Digital’s most recent criminal actions and infringement have been submitted in accordance with the law.
6.Course and progression of handling of the matter:This afternoon, 8 Sep 2016, OBI Pharma, Inc., has  submitted these additional complaints against Next Digital to its criminal lawsuit at the Shilin
District Prosecutors’ Office and to its civil lawsuit at the Taipei District Court for that company’s
false reporting and infringement upon OBI Pharma’s business reputation.
7.Effect on company finances and business and  estimated monetary amount of the effect:None
8.Countermeasures and status of amelioration:None
9.Any other matters that need to be specified:The business operation and financial status of the company are normal.