Taiwan District Court Dismisses MPS Fair Trade and Defamation Claims Against O2Micro.

SANTA CLARA, Calif. & GEORGE TOWN, Grand Cayman -- O2Micro(R) International Limited (Nasdaq:OIIM) announced that the Taipei, Taiwan District Court dismissed claims of Monolithic Power Systems, Inc. ("MPS") against O2Micro, alleging violations of Taiwan's Fair Trade Law and defamation.

MPS sought a permanent injunction against O2Micro from interfering with MPS' manufacturing, assembling, selling, importing, using or promoting its CCFL (Cold Cathode Fluorescent Lamp) Driver controllers, including MP1010, MP1012, MP1014, MP1016, MP1017, MP1018, MP1022, MP1023, MP1024, MP1025, MP1026, MP1028, MP1030, MP1031 and MP1038. In addition, MPS sought damages of at least NT$ 1,500,000 (approximately US$ 46,672).

O2Micro's patent infringement actions against MPS in the Taipei, Taiwan District Court and the U.S. District Courts remain pending.

About O2Micro

Founded in April 1995, O2Micro develops and markets innovative power management, and security components and systems for the computer, consumer, industrial, and communications markets. Products include Intelligent Lighting, Battery Management, Power Management, SmartCardBus(R) and Security products, such as VPN/Firewall system solutions.

O2Micro International maintains an extensive portfolio of intellectual property with 2,575 patent claims granted, and over 5,000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.

O2Micro, the O2Micro logo, SmartCardBus and combinations thereof are registered trademarks of O2Micro.

Statements made in this release that are not historical, including statements regarding outcome of pending and future litigation or appeals in the U.S. or foreign countries, future litigation filings or direction, 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 outcome of pending and future litigation or appeals or 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 Form F-1 in connection with the company's initial public offering in August 2000, Form F-3 in connection with the company's public offering in November 2001, and the annual reports on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.