EL SEGUNDO, CA. May 1997 - International Rectifier Corporation (IRF/NYSE/PSE) today announced an agreement with SGS-THOMSON Microelectronics, Inc. (ST) settling all outstanding litigation in the United States and Great Britain between International Rectifier and ST and its affiliated companies relating to MOSFET, IGBT and IC patents on the basis of world-wide cross licenses. The agreement supersedes the current agreement between IR and ST, which was limited to the United States.

The new agreement provides for continued payment of royalties by ST on certain sales in the United States and also for certain sales in Japan. The new agreement does not include a license to ST's new MESH overlay MOSFETs introduced late last year, nor does it require ST to pay royalties on its MESH or BCD products. No other terms of the agreement were disclosed.