Court Rules in Favor of Genesis Microchip in MStar's Patent Infringement Lawsuit Appeal; Ruling Affirms Patent Infringement by MStar and Upholds ITC Exclusion Order Barring Infringing MStar Products from Entry.

SAN JOSE, Calif. -- Genesis Microchip Inc. (Nasdaq:GNSS), a world leader in the development of image processing technologies for flat-panel TVs, monitors and other consumer display products, today announced that the Court of Appeals for the Federal Circuit has ruled in favor of Genesis and against MStar Semiconductor, Inc. in MStar's appeal of the determination by the U.S. International Trade Commission (ITC) that MStar infringed Genesis Microchip's patent.

The appellate court's decision issued today upheld the ITC's finding that the accused MStar upscalers infringe Genesis Microchip's U.S. Patent No. 5,739,867 entitled "Method and Apparatus for Upscaling an Image in Both Horizontal and Vertical Directions." The appellate court's ruling means that the ITC's Exclusion Order preventing the infringing MStar products from entry into the United States will remain in effect.

"We are very pleased with the Court's decision today which validates Genesis Microchip's intellectual property rights," said Elie Antoun, president and CEO of Genesis Microchip. "Protecting companies, large or small, that have invested significant resources to develop and patent technologies stimulates innovation and fosters fair competition."

About Genesis Microchip

Genesis Microchip Inc. (Nasdaq:GNSS) is a leading provider of image processing systems enabling superior picture quality in flat-panel TVs and a variety of consumer and PC-display products. Featuring Genesis Display Perfection(R) technologies and Emmy award-winning Faroudja(R) video technologies, Genesis system-on-a-chip solutions are used worldwide by display manufacturers to produce visibly better images across a broad array of devices including flat-panel displays, digital TVs, projectors, A/V receivers and DVD players/recorders. The Genesis technology portfolio features analog and mixed signal system-on-a-chip design, DCDi(R) by Faroudja deinterlacing, TrueLife(TM) video enhancement, IntelliComb(TM) video decoding and includes over 185 patents. Founded in 1987, Genesis supports its leading brand-name customers with offices in the U.S., Canada, India, Europe, Taiwan, South Korea, China, Japan and Singapore. For more information about Genesis Microchip Inc. or Genesis Display Perfection technologies, please visit www.gnss.com.

Note to Editors: Genesis, Genesis Display Perfection, Faroudja, DCDi by Faroudja, TrueLife and IntelliComb are trademarks or registered trademarks of Genesis Microchip Inc.