IXYS Reports Adverse Verdict in LoJack Litigation

SANTA CLARA, Calif.--Feb. 8, 2006--On January 30, 2006, trial commenced in Massachusetts state court over a dispute between Clare, Inc., a subsidiary of IXYS Corporation , and LoJack Corporation relating to a contract for the design, development and purchase of application specific integrated circuits and assemblies that terminated in March 2002, before IXYS acquired Clare. On February 8, 2006, the jury found that Clare was liable for damages in the amount of $36.7 million.

Under Massachusetts law, a jury's award is increased for pre-judgment interest at the rate of 12% per annum simple interest, based upon the timing of the breach and of the incurrence of damages. The determination of the amount of pre-judgment interest will be made by the judge before any entry of judgment. The judge is also expected to make a determination of the amount of attorneys' fees to be paid to LoJack as the prevailing party in the matter, which amount will be included in any judgment. Post-judgment interest accrues at a variable rate tied to U.S. Treasury securities.

Clare intends to seek post-judgment relief from the trial court and, if necessary, to file an appeal. The enforcement of the judgment will be stayed pending appeal without the necessity of filing any bond. Post-judgment proceedings and/or appeals may take several months or one or more years to conclude. Payment of an award, if ever, will only occur at the conclusion of this process.

Management is currently evaluating the impact of the jury's verdict on IXYS' financial statements.

"We are shocked by this verdict and expect to work vigorously in an effort to get it overturned. We believed before the trial, and continue to believe, that this was an agreement with a development phase with no guarantee of success. As it turns out, the product was not successfully developed before the contract terminated. We continue to believe that Clare did not make an unqualified promise to deliver a working product by a date prior to the contract's termination. Consequently, we continue to believe that Clare did not breach the contract," said Dr. Nathan Zommer, President and Chief Executive Officer of IXYS.

"As the case resulted in money damages to a former customer from whom we have not received substantial revenues since the acquisition of Clare in 2002, I do not expect the adverse verdict to have a significant impact on our future revenues or customer relationships."

IXYS develops and markets primarily high performance power semiconductor and control ICs that are used in controlling and converting electrical power efficiently in power systems for telecommunication infrastructure, motor drives, medical systems and transportation. IXYS also serves emerging markets with a combination of digital and analog integrated circuits to control flat panel displays, medical instruments and telecommunications products.

Safe Harbor Statement

The foregoing press release contains forward-looking statements. Forward looking statements include those regarding our continued beliefs regarding the contract and the expected effect on our future revenues and customer relationships. Further information on other risks that could affect IXYS is detailed and included in IXYS' 10-Q for the fiscal quarter ended September 30, 2005, as filed with the Securities and Exchange Commission. IXYS undertakes no obligation to publicly release the results of any revisions to these forward-looking statements.

Additional information may be obtained by visiting IXYS' website at http://www.ixys.com, or by contacting IXYS directly.