Taipei, Taiwan, Aug 11, 2006 – System General Corporation (SG - TAIEX: 6280), a leading provider of power management ICs, today announced the roll out of the SG584X series chip. SG will start volume shipment of the next generation of power management chips, the SG584X, in August.

With a different design scheme from its predecessor, the SG584X series boasts a new approach without the design in the ITC 337-TA-541 patent infringement investigation. Furthermore, the SG5841 product series was excluded from the investigation, pursuant to Order No. 13 issued by the Administrative Law Judge (ALJ) of the United States International Trade Commission (USITC) on December 21, 2005. Consequently, the marketing for the aforementioned products will not be adversely affected despite the pending outcome. As a result, SG has sped the commercial and volume production of its next generation product. Meanwhile, SG has also assisted its customers in system verification and safety agency approval in connection with the new product conversion. With all these efforts, the SG584X series is now successfully launched into the market.

As set by the ALJ, the Final Determination of the 337-TA-541 investigation from USITC will be issued in the middle of August. If the Final Determination remains unfavorable to SG, a limited exclusion order will issue and become effective shortly. According to Mr. Tom Yang, Chairman of System General, the investigation will be a valuable experience for System General despite the adverse consequences. Mr. Chandler Lin, President of System General, stated, “System General has long been committed to power management IC innovation and power system topology improvement. Although we take initiatives to obtain patents of new developments, the litigation case, however, helps us acknowledge the importance of strategic patent deployment. In addition, we have come to realize that meeting such challenges has been easier with the steadfast support from our partners, and we are very appreciative of the assistance from our loyal customers as well as the distributors that have displayed such dedicated trust in SG during the litigation proceedings.”

The ALJ issued an Initial Determination in the middle of May, recommending the USITC issue a limited exclusion order prohibiting the importation of SG’s six accused infringing products and two downstream products containing the same from entering the United States. The two downstream products are AC printer adaptor and computer LCD monitor (excluding LCD TV).

Regardless the result of the Final Determination, SG is committed to facilitating new products to keep pace with the interest and needs of its customers.