Axiom Microdevices Vindicated in Silicon Labs v. Axiom Microdevices Lawsuit and Allowed to Commence Sales of the World's Only Fully Integrated CMOS Power Amplifier for Mobile Telephones

IRVINE, CA -- (MARKET WIRE) -- May 24, 2006 -- Axiom Microdevices Inc. today announced that a federal district judge in Austin, Texas, entered his final judgment rejecting Silicon Laboratories' claims of patent infringement and technology trade secret misappropriation by Axiom Microdevices. This decision gives Axiom Microdevices the green light to commence sales of the world's first and only fully integrated complementary metal oxide semiconductor (CMOS) power amplifier (PA) for cellular telephones.

On April 6, 2006, a jury unanimously rejected Silicon Labs' claim that Axiom Microdevices misappropriated any technology or infringed any patent rights of Silicon Labs.

The judgment also supported the jury's verdict in favor of the co-defendant, Ali Niknejad, concluding that he did not misappropriate any technology from Silicon Labs.

"This judgment gives Axiom Microdevices' products and technology complete vindication," said Brett Butler, president and chief executive officer of Axiom Microdevices. "After waiting two years for our day in court, the jury needed only three hours to decide in our favor. Now, the judge's decision makes the jury's verdict final. We will put this behind us and focus on satisfying worldwide customer demand for our products and growing our worldwide customer base."

"It is unfortunate that a public company like Silicon Labs chose the courthouse over the marketplace in an attempt to eliminate its competition's distinct and advanced technology. Fortunately for Axiom Microdevices, the jury saw through this attempt," said Tom Watkins, counsel for Axiom Microdevices and partner at Brown McCarroll in Austin. "I think that the market will vindicate the superiority of Axiom Microdevices' technology. Silicon Labs' previous press releases implying victory were inaccurate and should be viewed in light of the final judgment issued in this case. The judge, in making his final ruling, enforced the jury verdict and refused to issue the permanent injunction requested by Silicon Labs. Axiom Microdevices is now free to market its products."

In summary, the judgment:

--  Removes all prior court-ordered restrictions on Axiom Microdevices,
    thereby enabling Axiom Microdevices to sell its products freely on the open
    market
--  Rejected all 16 of Silicon Labs' patent-infringement claims
--  Rejected Silicon Labs' tortious interference claim
--  Rejected all claims by Silicon Labs that any of its technology had
    been misappropriated, finding only that business/commercial trade secrets
    in the form of data sheets had been obtained by Axiom
--  Requires Axiom Microdevices to return any and all copies of Silicon
    Labs' data sheets
    

In addition, the judge fined Axiom Microdevices $250,000 for actions unrelated to the jury's verdict. The company is considering its options regarding this fine since it was based on the actions of its former legal counsel.

Axiom Microdevices' innovative and unique PA technology is manufactured in 130nm CMOS and can be used by customers in die form as well as in a standard lead-frame package. Axiom Microdevices' current generation of CMOS PA products target the GSM/GPRS standard and are ideal for dual-band, tri-band and quad-band mobile telephones.

About Axiom Microdevices Inc.

Founded in 2002 with patented breakthrough technology developed at the California Institute of Technology, Axiom Microdevices Inc. is the first company to use commodity complementary metal oxide semiconductor (CMOS) processes to produce fully integrated power amplifiers for the cellular telephone market. This technology creates breakthroughs in cost reduction and integration. Axiom Microdevices has assembled a diverse team of recognized leaders who focus on providing the best product with the highest quality and support to its worldwide customer base. ( www.axiom-micro.com)

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WunderMarx Inc.
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