O2Micro's OZ773 to be Offered in Select Compaq Presario Desktop PCs.

Business Editors/Technology Writers

SANTA CLARA, Calif. & GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)-- Jan. 21, 2002

O2Micro International Limited (Nasdaq:OIIM), a leading supplier of innovative power management and security ICs to mobile computer and communications manufacturers, announced today that OZ773 will be available in select Compaq Presario Desktop PC configurations beginning in early Spring. The OZ773 adds an industry standard EMV compliant, low cost smart card reader to Compaq's desktop computer keyboard.

The OZ773, the first in the patent pending E-Guardian family of products, combines a standard USB HUB with smart card reader functionality, eliminating the need for an external smart card reader. The OZ773 provides PC users with the ability to transact secure e-commerce transactions on the Internet using their desktop computer keyboard and a financial smart card. It is fully compliant with the Microsoft (MSFT) PC/SC specification and is EMV Level 1 certified. EMV certification is a requirement for a smart card reader when used with the new financial smart cards issued by American Express, Visa, and Citibank (MasterCard).

"We are delighted to have Compaq Computer as our first customer to incorporate this technology into their Smart Credit Card Internet Keyboard," said Sterling Du, O2Micro's Chairman and CEO.

"Compaq strives to bring our customers the very latest technologies to make the PC an easy-to-use, yet powerful tool that facilitates secure and convenient Internet purchasing, instant, secure Internet log-on and off, quick and easy access to Web sites and email by storing links, management of unique passwords and login information for favorite Internet sites, and other online convenience utilities," said Will Townsend, senior manager of Consumer Desktop Product Marketing in Compaq's Access Business Group. "Our use of the OZ773 allows Compaq the ability to offer such flexibility to our customers, so we're very pleased to be partnered with O2Micro."

The OZ773 is fully compliant with the Microsoft (MSFT) PC/SC specification and is EMV Level 1 certified. It is also compatible to the IEEE 7816 specifications and standard transmission protocols including T = 1, T = 0.

About O2Micro

Founded in March 1995, O2Micro designs, develops and markets innovative power management and security components for mobile communication, computer, information appliance, and LCD products. Products include AudioDJ(R), SmartCardBus(R) for secure on line e-commerce, LCD Backlight Inverters and Battery Management IC's.

O2Micro maintains an extensive portfolio of intellectual property with 378 patent claims granted, and over 710 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.

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 development process, and errors in the products. You are also referred to the documents filed by O2Micro with the SEC from time to time, including but not limited to the Form F-1 in connection with the company's initial public offering in August 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.