iWatt Announces the Acquisition of Simple Silicon, Inc.

The combination of iWatt and SSI creates a strong mixed-signal IC supplier and enables the integration of power and analog for a wide variety of applications

September 19, 2006 – Los Gatos, CA – iWatt, Inc., a leader in digital power conversion IC technology, announced today its acquisition of privately-held Simple Silicon, Inc. SSI designs industry-leading Analog Front Ends (AFEs) for products such as LCD TVs, digital cameras and DVD players, and analog building blocks such as power management, ADCs, DACs, PLLs. The combination of iWatt’s high-performance digital control technology and SSI’s precision analog expertise will enable further integration of analog and power functions in next generation ASICs as well as standard products for the computing, telecom and consumer markets.

“Over the past six years, SSI has established themselves as a premier supplier of breakthrough analog IP” said Curtis Davis, President and CEO of iWatt. “The key to their success has been the development of high-performance AFEs that they leverage into ASIC and ASSP silicon solutions by working closely with leading customers in the consumer and communication markets. We are very excited to be joining forces with such a strong technical team which will help us to expand and accelerate the growth of iWatt.”

"This merger provides an excellent opportunity for our customers to enhance their IP licensing experience with us while at the same time we can now provide them with additional component and system level power solutions” said Gyan Tiwary, President and CEO of SSI. “We look forward to leveraging the combined strengths of our two companies to provide long term value for our customers."

As a part of the merger, iWatt will be re-organized into two business units. Curtis Davis will continue as President and CEO of iWatt. Gyan Tiwary will assume the role of Senior Vice President and General Manager of Consumer and Custom Products. John Wagner will be the Senior Vice President and General Manager of Computing and Infrastructure Products. Xuecheng Jin, formerly Chief Technology Officer at SSI, will become Vice President of IC Engineering and will continue to support SSI’s current business. Bob Porter will continue in his role as Vice President of System Engineering. About iWatt, Inc.

iWatt, Inc. is a leading provider of innovative power management and conversion solutions, providing both semiconductor and power system products for the computer, communication, consumer and industrial market segments. The company's patented digital control and power system architecture expertise raises the bar in power supply price/performance metrics. iWatt is currently working with market leaders in the computing, telecom, networking, flat panel display and portable device markets to develop high density, high value AC-DC and DC-DC power supplies. iWatt is based in Silicon Valley with headquarters in Los Gatos, CA and offices in Fort Collins, CO; Taipei, Taiwan; Shenzhen, China; and Hong Kong. For more information, visit www.iwatt.com or call iWatt at (408) 374-4200.