O2Micro Plans To Appeal Jury Verdict In Patent Trial Against MPS

May 16, 2007. O2Micro® International Limited (NASDAQ®: OIIM; SEHK: 0457), a leading supplier o innovative power management and security components and systems, announced that it plans to appeal a jury verdict recently rendered in favor of defendants Monolithic Power Systems, Inc. (MPS) and Asustek Computer, Inc., related to one of O2Micro's inverter controller patents, U.S. patent number 6,396,722 (the 722 patent), in the United States District Court for the Northern District of California. The jury verdict indicated a finding that the defendants infringed claims 12 and 14 of the 722 patent under the doctrine of equivalents, but that claims 1, 2, 9 and 18 were not infringed and that each of the asserted claims was invalid due to obviousness and an on-sale bar.

O2Micro announced that it plans to seek judgment as a matter of law to overturn the jury verdict, and, if the verdict were to result in a judgment, plans to appeal the judgment to the Federal Circuit Court of Appeal.

O2Micro noted that the other claims of the 722 patent, including claims 3-8, 10-11, 13, 15-17, and 19, were not at issue in this case, and no challenge to validity of those claims has been made in this lawsuit.

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® and Security products, such as VPN/Firewall system solutions.

O2Micro International maintains an extensive portfolio of intellectual property with 7,223 patent claims granted, and over 8,000 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. All other trademarks are the property of their respective owners.

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. You can identify these forward-looking statements by terminology such as "may," "will," "expects," "should," "could," "plans," "intends," "believes," "predicts," or "continue" or the negative of these terms and other comparable terminology. These forward-looking statements include, without limitation, statements regarding future litigation activities, results and plans. 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 developments process, and adverse orders, rulings, judgments, verdicts, delays or adverse administrative proceeding results. You are also referred to the Form F-1 in connection with the company's initial public offering in August 2000, Form F-3 filed in November 2001 and October 2005, 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. We assume no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements which apply only as of the date hereof.

Contact Information:
Mitchell Benus
Director of Investor Relations, O2Micro
Phone: 408.332.1749
Email: mitchell.benus@o2micro.com

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