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Pixelplus Obtains Positive Decision on Patents Claim

September 13, 2006

The Korea Intellectual Property Office has granted the company's request to invalidate the disputed photo diode and sensor patents claimed by MagnaChip Semiconductor.


SEOUL, South Korea /PRNewswire-FirstCall/ -- Pixelplus Co., Ltd., a leading fabless semiconductor company that designs, develops, and markets CMOS image sensors for various consumer electronics applications, announced that it obtained a favorable ruling from the Korea Intellectual Property Office (KIPO) granting the company's request to effectively cancel and invalidate the disputed photo diode and sensor patents claimed by MagnaChip Semiconductor (MagnaChip).

As described in the company's Form F-1 Registration Statement filed with the U.S. Securities and Exchange Commission in December 2005, Pixelplus and MagnaChip have engaged in discussions over this issue since June 2005. In November 2005, Pixelplus initiated cancellation proceedings at KIPO to invalidate the disputed photo diode and sensor patents claimed by MagnaChip, and in May 2006, Pixelplus filed a request to expedite such proceedings with KIPO to obtain an early ruling on those patents.

In July 2006, the company separately initiated cancellation proceedings at KIPO to invalidate the disputed color filter and contact hole process patents claimed by MagnaChip and also filed a request to expedite those proceedings with KIPO. KIPO is expected to issue an early ruling on the disputed color filter and contact hole process patents in November 2006.

"We are very pleased with KIPO's decision, which is completely and unanimously in our favor," said Dr. Sang-Soo Lee, chief technology officer of Pixelplus. "KIPO's decision reinforces the company's firm and steadfast belief that MagnaChip's patent infringement claims are entirely groundless and without merit. In moving ahead, we will continue to vigorously oppose MagnaChip's claims and use our patented technology to penetrate and develop our business in new and emerging markets."

About Pixelplus Co., Ltd.
Pixelplus is a South Korea-based developer of high-performance, high-resolution, and cost-effective CMOS image sensors for use primarily in mobile camera phones. In addition to mobile phones, Pixelplus provides CMOS image sensors and SoC solutions for use in personal computer cameras and surveillance system applications. As a fabless semiconductor company, Pixelplus is focused on creating proprietary design technologies to develop image sensors with sharp, colorful, and enhanced image quality, size, efficiency, and low-power consumption.


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