U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19994 / February 8, 2007

SEC v. Daniel Fongnien Chiang and Eva Yi-Fen Chen, Civil Action No. 1:07CV00285 (D.D.C., filed February 8, 2007)

SEC Charges Former Co-Chairman of SINA Corp. and his Wife, CEO of Trend Micro Incorporated, With Insider Trading

The Securities and Exchange Commission announced today that it has filed a complaint in the United States District Court for the District of Columbia against Daniel Fongnien Chiang, the former Co-Chairman of SINA Corp., and his wife, Eva Yi-Fen Chen, the CEO of Trend Micro Incorporated, charging that Chiang, aided and abetted by Chen, engaged in illegal insider trading by selling SINA stock short while in possession of material, non-public information about internal SINA projections that SINA's first quarter 2005 mobile value-added revenues could be off my as much as twenty to thirty percent from the previous quarter, resulting in a twelve to eighteen percent decline in total revenues for the previous quarter.

The Commission's complaint alleges that on February 4, 2005, Chiang participated in a SINA Board of Director's meeting where he learned confidential information that SINA was going to disclose lower than expected revenue projections. On the morning of February 7, 2005, in breach of his duty of trust and confidence owed to SINA, Chiang, with the assistance of Chen, positioned himself to profit from a drop in SINA's stock price by placing eight separate orders to sell short 200,000 shares of SINA securities in Chen's mother's account. Due to the limited buying power in the account, ultimately, four orders totaling 70,000 shares of SINA were sold short in the account. After the close of the market on February 7, SINA announced that it was expecting a revenue shortfall, and its stock price dropped approximately 26%. As a result of his unlawful insider trading, Chiang realized $257,833 in ill-gotten gains.

Simultaneously with the filing of the complaint, Chiang has consented, without admitting or denying the allegations in the Commission's complaint, to the entry of an order that permanently enjoins him from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. In addition, the order bars Chiang from serving as an officer or director of a public company for a period of five years, requires him to pay disgorgement of $257,833 plus prejudgment interest thereon, and requires him to pay a civil penalty of $257,833. Also simultaneously with the filing of the complaint, Chen has consented, without admitting or denying the allegations in the Commission's complaint, to the entry of an order that permanently enjoins her from violating, directly or indirectly, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and requires her to pay a civil penalty of $128,916.