OIIM O2 Micro International Ltd

On May 26, 2005, the Taiwan Intellectual Property Office ("IPO") dismissed all cancellation actions filed by Monolithic Power Systems, Inc. ("MPS"), Beyond Innovation Technology Co., Ltd. ("BiTek") and an individual party against Taiwan Patent No. 152,318 (the '318 patent) held by O2Micro(R) International Limited ("O2Micro") (NASDAQ:OIIM). These cancellation actions were filed in 2003 and 2004 with the purpose of revoking the Taiwan patent which is a counterpart to U.S. patent number 6,259,615. O2Micro's patent infringement actions against MPS and BiTek in the District Court of Taipei and the U.S. District Courts remain pending. A patent infringement trial is scheduled in Texas in September against Sumida, a user of MPS product, and a separate patent infringement trial is scheduled in Texas in December against BiTek and two users of BiTek product, Lien Chang Electronic Enterprise Co., Ltd. ("Lien Chang") and SPI Electronic Ltd. ("SPI"). Additional cases for infringement of multiple U.S. patents are pending against other users of MPS product and one user of BiTek product. In addition, the District Courts in Taiwan have issued preliminary injunctions prohibiting MPS and BiTek from selling, making and importing their MP 1015, MP 1011A, BIT 3105, BIT 3105-P, BIT 3106 and BIT 3107 products. 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 2,608 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 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 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. Note: In "O2Micro," the 2 should read as subscript.