On July 1, 2008, the United States District Court for the District of Delaware issued judgment as a matter of law that Monolithic Power Systems, Inc. ("MPS") did not breach its October 1, 2005 Settlement and License Agreement with Linear Technology Corporation ("Linear"). MPS plans to seek recovery of substantial attorney fees and costs from Linear, pursuant to a prevailing party attorneys fees provision in the Settlement and License Agreement.

The court also found as a matter of law that MPS had not willfully infringed the patent claims of U.S. Patent Numbers 5,481,178 and 6,580,250 asserted by Linear against MPS' accused MP1543 product, which has been discontinued. However, the jury returned a verdict that an evaluation board containing the previously discontinued MP1543 product had directly infringed the asserted patent claims and that Linear's patents mentioned above are valid. The parties had stipulated to a total of ten dollars in minimal patent infringement damages in the event that Linear prevailed in that dispute.

A press release providing more detail regarding the events described above is attached as Exhibit 99.1.

(d) Exhibits.

Exhibit      Description
99.1         Press Release issued on July 1, 2008, which provides an update on the
             case between Monolithic Power Systems, Inc. and Linear Technology
             Corporation.