Appeals Court Affirms Status of O2Micro Lawsuit

25 November 2006

O2Micro(r) International Limited (Nasdaq:OIIM) (SEHK:0457), a leading supplier of innovative power management and security components and systems, announced that the United States Court of Appeals for the Federal Circuit issued a decision affirming a prior grant of summary judgment of non-infringement of U.S. Patent No. 6,259,615 by Monolithic Power Systems, Inc. ("MPS").

The decision does not affect the validity of U.S. Patent No. 6,259,615 which was found to be valid in a prior jury trial in May 2006 and the validity of a related patent, U.S. Patent No. 6,396,722 which was found to be valid in two prior jury trials in November 2005 and May 2006. In addition, the decision is only limited to infringement of U.S. Patent No. 6,259,615 by MPS inverter controllers and does not hold that MPS inverter controllers do not infringe U.S. Patent No. 6,396,722.

The prior November 2005 jury verdict, entry of judgment, damage award and permanent injunction against Taiwan Sumida Electronics Inc. for infringement of U.S. Patent No. 6,396,722 by inverter modules incorporating inverter controllers manufactured by MPS remains in effect.

The prior May 2006 jury verdict of willful infringement of U.S. Patent Nos. 6,259,615, 6,396,722 and 6,804,129 against Beyond Innovation Technology Co., Ltd., SPI Electronic Co., Ltd., FSP Group and Lien Chang Electronic Enterprise Co., Ltd. also remains unaffected.

About O2Micro

Founded in April 1995, O2Micro develops and markets innovative power management, and security components and systems for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, SmartCardBus(r) and Security products, such as VPN/Firewall system solutions.

O2Micro International maintains an extensive portfolio of intellectual property with 6,107 patent claims granted, and over 8,000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.

O2Micro, the O2Micro logo, SmartCardBus and combinations thereof are registered trademarks of O2Micro. All other trademarks are the property of their respective owners.

Statements made in this release that are not historical, including statements regarding O2Micro's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Factors that could cause actual results to differ materially include risks and uncertainties such as reduced demand for products of electronic equipment manufacturers which include O2Micro's products due to adverse economic conditions in general or specifically affecting O2Micro's markets, technical difficulties and delays in the developments process, and errors in the products. You are also referred to the Form F-1 in connection with the company's initial public offering in August 2000, Form F-3 in connection with the company's public offering in November 2001, and the annual reports on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

CONTACT: O2Micro

Joseph Lin, General Counsel

(408) 987-5920

info@o2micro.com

Source: primezone

All trademarks and copyrighted information contained herein are the property of their respective owners.