Power Integrations Comments On Delay of Patent-Validity Trial

Power Integrations (Nasdaq:POWI), the leader in high-voltage analog integrated circuits for power conversion, today commented on the status of its patent-infringement lawsuit against Fairchild Semiconductor.

In October, 2006, a jury found that Fairchild willfully infringed four Power Integrations patents by virtue of its sales of "Green FPS" PWM controller products, and awarded damages of approximately $34 million. As a defense to infringement, Fairchild has alleged that the patents are invalid, and that issue remains to be addressed in a second trial, initially scheduled to begin today but now postponed until May 7, 2007.

Specifically, Fairchild has asserted that Power Integrations' patent claims were "obvious" in view of prior art references. On November 28, 2006, the United States Supreme Court heard argument in the matter of KSR International Co. v. Teleflex, Inc. et al. The central issue in the KSR case is the proper legal standard to be applied by the courts to assess obviousness of inventions under the patent laws. In light of this potentially precedent-setting case, the district court has postponed Power Integrations' trial pending the outcome of the KSR case.

Power Integrations believes the patents and patent claims at issue in the Fairchild case are valid over the prior art raised by Fairchild and that any potential change in the standard resulting from the Supreme Court case is not likely to affect the outcome in this case.

"Although we will be delayed in upholding the validity of our patents, we are confident that we will receive a favorable resolution when we go to trial on May 7, 2007, and receive a permanent injunction preventing further infringement by Fairchild," said Balu Balakrishnan, president and CEO of Power Integrations. "We expect the validity of our patents to be upheld."

Upon confirmation of the validity of its patents, Power Integrations intends to seek an injunction against the continued manufacture, importation and sale of all infringing Fairchild parts. The company also intends to seek enhancement of the initial damage award based on the jury's finding of willful infringement.

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements reflecting management's expectations with regard to the outcome of its case against Fairchild. These forward-looking statements are based on current information that is, by its nature, subject to change. Forward-looking statements are denoted by the use of the words and phrases "expect" and "believe." Actual results could differ materially from those projected or implied due to risks and uncertainties associated with the company's business and with patent litigation. These risks and uncertainties include, but are not limited to: the impact of the pending Supreme Court case on Power Integrations' case against Fairchild; the fact that any verdict is subject to appeal; and the fact that litigation is inherently uncertain, which could result in no damages or less damages being paid to Power Integrations than expected or no injunction being imposed on Fairchild. General risk factors associated with the company's business are discussed in the company's most recent report on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

About Power Integrations

Power Integrations, Inc. is the leading supplier of high-voltage analog integrated circuits used in power conversion. The company's breakthrough technology enables compact, energy-efficient power supplies in a wide range of electronic products, in both AC-DC and DC-DC applications. The company's EcoSmart(r) energy-efficiency technology, which dramatically reduces energy waste, has saved consumers and businesses around the world more than an estimated $1.9 billion on their electricity bills since its introduction in 1998. For more information, visit the company's website at www.powerint.com.

CONTACT: Power Integrations, Inc.

Investors and financial media:

Joe Shiffler

(408) 414-8528

jshiffler@powerint.com

Technical/trade media:

Nancy Renzullo

(408) 414-9641

nrenzullo@powerint.com

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