Power Integrations Reports Verdict in Patent Case Against Fairchild Semiconductor

April 27, 2012

Fairchild found to infringe and induce infringement of two Power Integrations patents

SAN JOSE, Calif.--(BUSINESS WIRE)-- Power Integrations (Nasdaq:POWI) today announced a verdict reached in the company's 2008 patent-infringement lawsuit against Fairchild Semiconductor. After a three-week trial in the U.S. District Court for the District of Delaware, a jury found that Fairchild infringes two Power Integrations patents. The infringement findings cover approximately 75 Fairchild products, including the following products and those with substantially identical infringing circuitry:

AS1000     FAN6754     FSEZ1217     PO268MY     SG6846
AS1003     FAN6791     FSEZ1307     PO368MY     SG6846A
AS1207     FAN6793     FSEZ1317     SG5841J     SG6846B
DAP024     FAN6861     FSEZ2007     SG5842J     SG6846C
FAN100     FAN6862     FSEZ2016     SG5842JA     SG6846G
FAN102     FAN6862L     FSEZ2037     SG5851     SG68502
FAN103     FAN6862R     LTA504SG     SG5851A     SG68502A
FAN104     FSBH0170     LTA504SJ     SG6741     SG68502B
FAN301     FSBH0270     LTA703S     SG6741A     SG6859
FAN400A     FSBH0370     LTA704S     SG6742     SG6859A
FAN400C     FSBH0F70     LTA705S     SG6742HL     SG6860
FAN6747     FSEZ1016A     LTA809FA     SG6742HR     SGP100
FAN6751     FSEZ1116     LTA810FA     SG6742ML     SGP101
FAN6752     FSEZ1216     LTA811FA     SG6742MR     SGP400
FAN6753     FSEZ1216B     PO168MY     SG6842J      

The jury also upheld the validity of the infringed patents, and further found that Fairchild has induced others to infringe Power Integrations' patents. Power Integrations will seek an injunction preventing further infringement and is seeking financial damages, as well as enhanced damages for willful infringement, issues that are to be decided in a separate trial to be held at a later date.

Of the two counterclaim patents asserted in the case by Fairchild, one was found by the jury not to be infringed. The jury found the second Fairchild patent to be infringed by a limited number of Power Integrations products, but further found that Power Integrations did not induce infringement by any customers, including customers outside the United States, who are therefore unaffected by the verdict. Power Integrations is challenging the enforceability of the Fairchild patent, an issue still to be decided by the judge overseeing the case. Nevertheless, Power Integrations estimates that even if the verdict were ultimately upheld, the sales potentially impacted amount to only about 0.1% of the company's revenues.

The latest verdict follows rulings in two earlier cases brought by Power Integrations against Fairchild and its System General subsidiary. In 2006, Fairchild was found to infringe four Power Integrations patents, including the same two patents found infringed today. The Court issued a permanent injunction against more than 100 infringing Fairchild products in that case, and later found the infringement to be willful, resulting in enhancement of the damage award, which currently stands at $12 million. The results of that case are currently under appeal.

Also in 2006, the International Trade Commission (ITC) found that System General, later acquired by Fairchild, infringed two Power Integrations patents and issued an exclusion order barring the infringing products from the U.S. market.

Commented Balu Balakrishnan, president and CEO of Power Integrations: "We are gratified that the legal system has once again helped us protect our innovations, and we hope this decision will put a stop to Fairchild's repeated violations of our intellectual property."

About Power Integrations

Power Integrations, Inc., is a Silicon Valley-based supplier of high-voltage integrated circuits and other high-voltage components used in energy-efficient power conversion. The company's innovative technologies enable compact, reliable AC-DC power supplies for a vast range of electronic products including mobile devices, TVs, PCs, appliances, smart utility meters and LED lights. Since its introduction in 1998, Power Integrations' EcoSmart® energy-efficiency technology has prevented billions of dollars' worth of energy waste and millions of tons of carbon emissions. Reflecting the environmental benefits of the company's products, Power Integrations' stock is included in the NASDAQ® Clean Edge® Green Energy Index, The Cleantech Index®, and the Ardour Global IndexSM. For more information, including design-support tools and resources, please visit www.powerint.com; visit Power Integrations' Green Room for a comprehensive guide to energy-efficiency standards around the world.

Note Regarding Forward-Looking Statements

The statement in this press release relating to the potential revenue impact of this litigation is a forward-looking statement reflecting management's current expectations and beliefs. This forward-looking statement is based on current information that is, by its nature, subject to rapid and even abrupt changes. Due to risks and uncertainties associated with the company's business, the litigation process, and the reaction of customers to the decision, actual results could differ materially from those projected or implied by this forward-looking statement. General risk factors associated with the company's business are more fully explained under the caption "Risk Factors" in the company's most recent Quarterly Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on February 29, 2012. 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, except as otherwise required by the rules and regulations of the SEC.

Power Integrations, EcoSmart, and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc.

Power Integrations, Inc.
Joe Shiffler, 408-414-8528

Source: Power Integrations, Inc.

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