Taiwan, October 19, 2006 - MStar Semiconductor, a market leader in IC design and image processing technologies for LCD flat panel television and computer monitors and Genesis® Microchip Inc. (Nasdaq: GNSS), a world leader in the development of image processing technologies for flat-panel TVs, monitors, and other consumer display products, today announced they have settled the patent infringement complaints filed by Genesis Microchip against MStar in the U.S. International Trade Commission (ITC) and entered into a license agreement. The ITC had previously ruled that certain controllers and products containing those controllers infringed Genesis Microchip¡¦s U.S. Patent No. 5,739,867 and issued an Exclusion Order preventing the infringing products from entry into the United States. While the terms of the license agreement are confidential, they include a license of certain Genesis Microchip patents to MStar in exchange for undisclosed running royalties. This license allows MStar to ship the infringing products into the United States. "We have entered into this license agreement with MStar to foster an environment of fair competition and to support our continual goal of protecting Genesis Microchip's significant investment in its intellectual property," said Elie Antoun, president and CEO of Genesis Microchip. "We appreciate Genesis Microchip's cooperation in settling this matter which provides a stable market environment for our customers," said Wayne Liang, Chairman of MStar.