Company to Explore Separating Its Intelligent E-Commerce
      Group Through Spin-Off or Other Transaction to Focus on
                       Growth Opportunities

GEORGE TOWN, Grand Cayman, Aug. 1, 2012 (GLOBE NEWSWIRE) -- O2Micro(R)
International Limited (Nasdaq:OIIM), a global leader in the design,
development and marketing of high-performance integrated circuits and
solutions, today announced that it will be exploring various strategic
alternatives for its Intelligent E-Commerce Group, including the
exploration of the separation of its E-Commerce business into a
separate company through a joint venture or some other related
transaction.

O2Micro's Intelligent E-Commerce Group has a strong history of
innovation and technological leadership. The Intelligent E-Commerce
Group has a product and patent portfolio of flash memory host adapter
ICs for notebook PCs, including but not limited to the following
interfaces, SD2.0, SD3.0, compact flash, SmartMedia and other
standards.

This strategy is in line with O2Micro's plan to fundamentally
streamline its operations and focus on its core growth business,
including its traditional Consumer and Computer Markets, as well as its
fast growing General Lighting and Industrial markets. An important
component of the plan is focusing its investments, resources and
management attention to drive higher value from its core growth
markets. O2Micro believes that the exploration of alternatives for the
Intelligent E-Commerce Group will help the Company focus on its
strategic goals and pursue profitable and long-term growth, resulting
in enhanced shareholder value.

"The exploration of strategic alternatives for the Intelligent
E-Commerce Group demonstrates our commitment to enhancing shareholder
value and sharpening our strategic and financial focus," said Sterling
Du, O2Micro's Chairman and CEO. "We believe the exploration of
alternatives for the Intelligent E-Commerce Group would allow O2Micro
to focus our developmental resources on faster growth drivers and
better execute our focused strategy."

O2Micro management, together with its financial and legal advisors,
will explore several strategic alternatives related to its Intelligent
E-Commerce business, including a joint venture in conjunction with
another business partner. O2Micro expects that the process could be
completed by the end of the year, or possibly first quarter of 2013.

There can be no assurance that any transaction regarding O2Micro's
Intelligent E-Commerce Group will be pursued or completed. The Company
does not intend to disclose developments with respect to the progress
of this review process until such time as the O2Micro board of
directors approves or completes such a transaction, or otherwise
determines that further disclosure is appropriate.

Conference Call

O2Micro will be discussing this announcement during its previously
scheduled second quarter 2012 earnings conference call today, August 1,
2012, at 6:00 a.m. (PDT), 9:00 a.m. (EDT). You may participate using
the following dial-in information.


  In the US and CANADA:             866-719-0110, pass code #8141652      
  INTERNATIONAL participants:       719-234-0008, pass code #8141652      



A replay of the call will be available by phone until August 8th using
the following dial-in information.


  In the US and CANADA:             888-203-1112, pass code #8141652      
  INTERNATIONAL participants:       719-457-0820, pass code #8141652      



A live webcast will also be available on the Company's website at
www.o2micro.com, and an online replay will be available on the website
for one week.

About O2Micro

Founded in April 1995, O2Micro develops and markets innovative power
management and e-commerce components for the Computer, Consumer,
Industrial, and Communications markets. Products include Intelligent
Lighting, Battery Management, and Power Management.

O2Micro International maintains an extensive portfolio of intellectual
property with 20,690 patent claims granted, and over 21,000 more
pending. The company maintains offices worldwide. Additional company
and product information can be found on the company website at
www.o2micro.com.

O2Micro, the O2Micro logo, Cool Battery Technology, SmartCardBus, and
combinations thereof are registered trademarks of O2Micro.
MemoryCardBus is a trademark of O2Micro. All other trademarks or
registered trademarks are the property of their respective owners.

The O2Micro International Limited logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6567

Statements made in this release that are not historical, including
statements regarding O2Micro's or management's intentions, hopes,
beliefs, expectations, representations, projections, plans or
predictions of the future, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve risks and uncertainties that may cause actual
results to differ materially from those set forth in these statements.
Factors that could cause actual results to differ materially include
risks and uncertainties such as reduced demand for products of
electronic equipment manufacturers which include O2Micro's products due
to adverse economic conditions in general or specifically affecting
O2Micro's markets, technical difficulties and delays in the
developments process, and errors in the products. You are also referred
to the Form F-1 in connection with the company's initial public
offering in August 2000, Form F-3 in connection with the company's
public offering in November 2001, and the annual reports on Form 20-F,
which identify important risk factors that could cause actual results
to differ from those contained in the forward-looking statements. The
company assumes no obligation to update or revise any forward-looking
information, whether as a result of new information, future events or
otherwise.


CONTACT: Scott L. Anderson
         Director of Investor Relations, O2Micro
         Phone: 408.987.5920, x8888
         Email: scott.anderson@o2micro.com