Taiwan, May 29, 2006 - MStar Semiconductor, Inc. (¡§MStar¡¨), a market leader in IC design and image processing technologies for LCD flat panel television and computer monitors, announced that the Federal Circuit affirmed the exclusion order of the International Trade Commission (ITC) in connection with Genesis 867¡¦ patent and Mstar¡¦s LCD computer monitor controllers. Despite the decision, the TSUNAMI chips were designed to be non-infringing based on the claim interpretation given to the '867 patent by the ITC as now affirmed by the Federal Circuit. Therefore, the decision of the Federal Circuit does not affect the basis of the design-around, nor does it affect the basis of the decision of the U.S. Customs made in July 2005 ruling the TSUNAMI chips were not covered by the ITC exclusion order. Consequently, the decision of the Federal Circuit is not expected to have any impact on Mstar¡¦s business.