ITC Moves to Investigate Claims of Infringement of Power Integrations Patents by System General Corp.

June 8, 2005

Decision Is First Step Toward Possible U.S. Action to Bar LCD Displays and Other Products Containing System General PWM Controllers

SAN JOSE, Calif. – June 8, 2005 – Power Integrations, Inc. (Nasdaq: POWI), the leading supplier of high-voltage analog integrated circuits used in power conversion, today an nounced that the U.S. International Trade Commission (ITC) has moved to institute an investigation into whether System General Corporation is infringing Power Integrations' U.S. Patent Nos. 6,212,079; 6,351,398; 6,366,481; and 6,538,908 . The ITC's decision is the first step toward possible U.S. government action to exclude certain System General products from the U.S. market. The products in dispute are System General's pulse-width modulation (PWM) integrated circuits and products that incorporate them, principally LCD monitors. A news release announcing the ITC decision can be found on the Commission's web site,

"We are gratified that the ITC will commence a full investigation into System General's actions," said Balu Balakrishnan, president and CEO of Power Integrations. "We believe strongly that the ITC will find that System General's products infringe upon our intellectual property."

The ITC's decision initiates an investigation under Section 337 of the U.S. Tariff Act. Section 337 investigations are usually completed within nine to 12 months from the institution of an investigation. If the ITC determines that System General products infringe any of Power Integrations' patents and are being imported into the United States, the ITC may order that those products and any products incorporating them be excluded from importation into the U.S.

The U.S. International Trade Commission is an independent, nonpartisan, quasi-judicial federal agency that provides trade expertise to both the legislative and executive branches of government, determines the impact of imports on U.S. industries, and directs actions against certain unfair trade practices, such as patent, trademark and copyright infringement.

Power Integrations' complaint against System General is also pending in the Federal District Court for the Northern District of California.

Note Regarding Forward-Looking Statements
This press release contains forward-looking statements reflecting management's current forecast of the company's future business and financial performance. These forward-looking statements are based on current information that is, by its nature, subject to rapid and even abrupt changes. Forward-looking statements are denoted by the use of such words and phrases as "believe" and similar words and phrases that look toward future events or performance. The company's actual results could differ materially from those projected or implied by our forward-looking statements due to risks and uncertainties associated with the company's business. These risks and uncertainties include, but are not limited to, changes and shifts in customer demand away from products that integrate the company's ICs to products that do not incorporate the company's products; our ability to maintain and establish strategic relationships; the effects of competition; the risks inherent in the development and delivery of complex technologies; our ability to attract, retain and motivate qualified personnel; the emergence of new markets for our products and services, and our ability to compete in those markets based on timeliness, cost and market demand; the outcome of patent litigation and related activities; and our limited financial resources. These and other risk factors are more fully discussed in the company's most recent report on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.


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 For information on global energy-efficiency standards and EcoSmart solutions, visit the Power Integrations Green Room at

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