System General Website

System General to File an Appeal on the Final Determination of USITC Investigation 337-TA-541

Taipei, Taiwan, Dec 07, 2006 –System General, the leading provider of power management ICs, today announced that it had officially filed an appeal against the final determination of USITC investigation 337-TA-541 in the hope that the United States Court of Appeals for the Federal Circuit would hear on this case and make a new determination against the said unfavorable results for the company.

Mr. Chandler Lin, president of System General, pointed out that ever since the Administrative Law Judge of United States International Trade Commission (USITC) made an initial determination which was unfavorable to the company in May, System General had conducted an in-depth analysis on the text of the final determination of USITC and the evidence after consulting with legal and patent advisors as well as in-house technical experts. They reached the consensus that the said USITC final determination had left many disputes unsolved, so the United States Court of Appeals for the Federal Circuit might well hold a different view on this case. System General had decided to file an appeal after carefully weighing the expected input of resources and the chance of a victory. This decision was mainly aimed at protecting the company’s long standing conviction to respect patents and pursue technical innovation.

USITC investigation 337-TA-541 was filed by Power Integrations Inc. of the U.S. on May 16, 2005. In August, 2006, USITC made an initial determination unfavorable to System General and issued a limited exclusion order to six IC products and two downstream products for LCD monitor and printer which included the said six IC products. The said exclusion order officially came into force in mid October. This had caused a short impact on System General’s business performance from May to July, but its revenue had gradually recovered beginning in August because of a smooth introduction of new products.

According to System General, the said appeal would last for more than a year. It was estimated that an outcome of the said appeal would be disclosed in the first half of 2008.