$1 Billion in Energy Savings – How Big Is Your Share?

May 24, 2005

Power Integrations' EcoSmart® Energy Savings Surpass $1 Billion

SAN JOSE, Calif. – May 24, 2005 – Consumers and businesses worldwide have now saved an estimated $1 billion on their electricity bills through the use of products containing Power Integrations' EcoSmart power-conversion chips. The company's high-voltage integrated circuits (ICs) are used to replace outdated, energy-wasting power-conversion technologies such as copper-and-iron linear transformers, also known as "energy vampires." The company estimates that each of its EcoSmart ICs used in place of a linear transformer saves consumers between $3 and $6 on their energy bills over the life of an average product.

Virtually every electronic product requires either an internal power supply - as in the case of a DVD player or a desktop PC - or utilizes an external adapter or charger, as in the case of a cell phone or portable music player. Introduced in 1998, Power Integrations' patented EcoSmart technology gives power supplies the intelligence to manage the flow of power into a product and operate at very high levels of efficiency.

Power supplies using older technologies such as linear transformers consume far more power than is actually needed to run a given product, often operating at efficiency levels as low as 30 percent. Inefficient power supplies also consume a significant amount of power even when their products are not in use, such as when a DVD player or TV is turned off by remote control, when a PC or printer is in "sleep" mode, or when a cell-phone charger is left plugged into a wall socket. Lawrence Berkeley National Laboratory estimates that this "standby" power waste accounts for as much as 10 percent of all residential electricity consumption, resulting in millions of tons of carbon dioxide emissions each year.

EcoSmart ICs enable power supplies to operate at substantially higher efficiency levels, and reduce standby power waste by up to 95 percent. The recent introduction of energy-efficiency regulations by Energy Star, the California Energy Commission, the EU, China and other policy makers around the world is expected to accelerate the adoption of technologies such as EcoSmart.

"We are proud to have saved consumers and businesses around the world an estimated $1 billion on their energy bills over the past seven years," said Balu Balakrishnan, president and CEO of Power Integrations. "As we continue to ship increasing numbers of EcoSmart chips, the next $1 billion in savings will come even more quickly than the first.

"Consumers can easily estimate a portion of their energy savings by checking the external power adapters in their home," continued Balakrishnan. "According to Energy Star, there are 5-10 external adapters in an average U.S. household. For each one that is lightweight and cool to the touch when plugged in, homeowners can award themselves $3 to $6 in savings over the five-year life of an average product. And the savings don't end with external adapters. Our EcoSmart ICs also improve the efficiency of power supplies that the consumer can't see, inside computers, DVD players, set-top boxes, consumer appliances and many more products."

Power Integrations' Green Room web site (www.powerint.com/greenroom) contains information on the issue of energy waste from inefficient power supplies, as well as tips on how to minimize the amount of energy wasted by household and office electronics. The Green Room also provides a comprehensive guide to energy-efficiency standards around the world, as well as a host of reference designs and software to assist in the design of energy-efficient power supplies.

About Power Integrations
Power Integrations, Inc. is the leading supplier of high-voltage analog integrated circuits used in power conversion. The company's breakthrough integrated-circuit technology enables compact, energy-efficient power supplies in a wide range of electronic products, in both AC-DC and DC-DC applications. The company's EcoSmart® energy-efficiency technology, which dramatically reduces energy waste, has saved consumers and businesses around the world more than an estimated $1 billion on their electricity bills since its introduction in 1998. For more information, visit the company's Web site at www.powerint.com. For information on global energy-efficiency standards and EcoSmart solutions, visit the Power Integrations Green Room at www.powerint.com/greenroom.

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