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Power Integrations Expands and Upgrades its
Yield Management Software from Yield Dynamics

Sunnyvale, CA, May 10, 2004 Yield Dynamics, Inc. (“YDI”) announced today that Power Integrations, Inc. (“PI”; Nasdaq: POWI) has purchased additional Genesis Fabless™ yield management clients and Yield Base® database software from YDI to expand and upgrade its yield management capabilities.  PI is the leading semiconductor supplier of high-voltage analog integrated circuits used in power conversion.

PI originally purchased Genesis in 2000, including a worldwide integration of YDI’s Yield Base database for enterprise-wide data storage and management, as well as multiple floating Genesis Fabless™ clients, for yield analysis of its manufacturing processes, including outsourced chip fabrication and in-house testing.  Over the past four years, PI has reported improved yield management results while working closely with YDI to efficiently track yield excursions.  With this current purchase building upon the multi-million dollar infrastructure already in place, PI has upgraded to YDI’s Yield Base 2.0 database architecture and added additional floating client licenses.

“Because Power Integrations manufactures a broad portfolio of leading-edge power conversion chips, having the right database and yield analysis environment is an important part of continuing to make our products available to our customers in a timely and cost-effective manner,” commented Clifford Walker, PI’s Vice President of Corporate Development.  “The Genesis platform has proven itself over the past four years to be an essential element of our daily operations and production, prompting our decision to expand our investment in order to stay at the leading edge with the newest technologies being offered by Yield Dynamics.”

Homi Fatemi, YDI’s Vice President of Sales and Marketing, added, “Power Integrations’ decision to expand and upgrade its Genesis platform indicates the strong value that market-leading fabless companies achieve by using YDI software to manage and improve their outsourced manufacturing processes.  Since our Genesis software is in daily production both in the world’s leading semiconductor foundries as well fabless companies ranging from start-ups to the largest of the public companies in this space, we are in a unique position to continue innovating the right products to meet the needs of the increasingly important foundry/fabless collaboration model.”

About Power Integrations, Inc.

Power Integrations is a leading supplier of high-voltage analog integrated circuits for use in AC to DC and DC to DC power conversion.  For more information, visit the company's web site at: www.powerint.com or contact the company at 5245 Hellyer Ave., San Jose, Calif. 95138; (408) 414-9200.

About Yield Dynamics, Inc.

Headquartered in Sunnyvale, Calif., Yield Dynamics, Inc. is the leading provider of enterprise yield management and advanced process control software for semiconductor and flat panel display (FPD) manufacturers, as well as fabless chip design companies.  The company’s extensible software platform enables customers to quickly identify and correct semiconductor and FPD production failures, achieving faster product ramps and higher yields.  Additional information about Yield Dynamics can be found at http://www.ydyn.com or by calling (408) 773-3100.

Trademarks

Yield Dynamics, Genesis, Genesis Fabless, and Yield Base are trademarks or registered trademarks of Yield Dynamics, Inc.

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