POWER INTEGRATIONS acquires POTENTIA SEMICONDUCTOR

SAN JOSE, Calif., Feb 6, 2008 -- Power Integrations (Nasdaq:POWI), the leader in high-voltage analog integrated circuits for power conversion, today announced that it has acquired Potentia Semiconductor, a developer of innovative controller chips for high-power AC-DC power supplies. Potentia's engineering team, based in Ottawa, Canada, will form the core of a new analog design group for Power Integrations focused primarily on high-power applications.

"Potentia is an excellent addition to our team," said Balu Balakrishnan, president and CEO of Power Integrations. "Like Power Integrations, Potentia is focused on developing innovative power-conversion ICs and system designs that reduce the size, complexity and energy usage of power supplies. Their design capabilities and intellectual property will accelerate our efforts to address high-power applications and significantly expand our addressable market."

Power Integrations paid approximately $5.5 million in cash for Potentia, including closing costs. The acquisition closed on December 31, 2007. Power Integrations' financial results for the fourth quarter of 2007 include a one-time charge of $1.4 million for purchased in-process research and development expenses.

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 $2.7 billion on their electricity bills since its introduction in 1998. For more information, visit the company's website at http://www.powerint.com/.