O2Micro's LED Technology Brightens Future

March 27, 2008. O2Micro® International Limited (NASDAQ®: OIIM; SEHK: 0457), a leading supplier of innovative power management products is pleased to announce that several of the top-tier notebook computer manufacturers have chosen O2Micro's LED Backlight drivers for their high-end models.

LED backlights are becoming popular in high-end consumer notebooks and O2Micro is establishing a leading position in this emerging market segment. The incremental gains brought about by LED backlights are important for high-end notebook manufacturers because image quality has become a key feature since multimedia applications have become commonplace. In order to address this rapidly growing opportunity, O2Micro has brought to bear its experience in backlighting and power management to provide an innovative LED driver that combines high image quality, without compromising critical battery life.

LED backlights offer the following advantages:

  • Energy efficiency
  • Better color saturation
  • Longer life
  • Simpler design
  • Environmentally friendly

"Our LED backlight chips operate at high efficiency and allow our customers to build a very pleasing LCD display in their notebooks and other applications," observed Dr. Yung Lin, executive vice president, O2Micro. He added, "Our patent-pending Area Lighting Technology, employed by O2Micro's LED driver chips, reduces motion blur in video and improves the contrast ratio of the display."

O2Micro is shipping production volumes of LED drivers used in major OEM notebook products. With enhancements in LED chip performance coupled with future cost reductions, LED backlight adoption will increase in notebook applications and other market segments. "Approximately 17% of the 2008 worldwide demand for notebook backlight displays will consist of LED backlight displays compared to approximately 83% for traditional CCFL backlight displays," comments Richard Schiffer, Director of Sales and Marketing, Intelligent Lighting Group. He continued, "O2Micro is well positioned to serve this growing market by continuously addressing our customer's requirements."

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 8,594 patent claims granted, and over 9,000 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. Area Lighting Technology and combinations thereof are 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. 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 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.

Contact Information:
Gary E. Abbott
Director of Investor Relations, O2Micro
Phone: 408.987.5920. x8888
Email: gary.abbott@o2micro.com

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