EXHIBIT 2
FOR IMMEDIATE RELEASE
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                            POWER INTEGRATIONS, INC.

                        ADOPTS STOCKHOLDERS RIGHTS PLAN

  Sunnyvale, California, February 24, 1999 -- Power Integrations, Inc. (POWI)
announced today that its Board of Directors has adopted a Preferred Stock
Purchase Rights Plan designed to enable all Power Integrations stockholders to
realize the full value of their investment and to provide for fair and equal
treatment for all Power Integrations stockholders in the event that an
unsolicited attempt is made to acquire Power Integrations.  The adoption of the
Plan is intended as a means to guard against any potential use of takeover
tactics designed to gain control of Power Integrations without paying all
stockholders full and fair value.  The distribution of the Rights is not in
response to any proposal to acquire Power Integrations.  The Board is not aware
of any such effort.

  Under the plan, stockholders will receive one Right to purchase one one-
thousandth of a share of a new series of Preferred Stock for each outstanding
share of Power Integrations Common Stock held of record at the close of business
on March 12, 1999.

  The Rights, which will initially trade with the Common Stock, become
exercisable to purchase one one-thousandth of a share of the new Preferred
Stock, at $150.00 per Right, when someone acquires 15 percent or more of Power
Integrations' Common Stock or announces a tender offer which could result in
such person owning 15 percent or more of the Common Stock.  Each one one-
thousandth of a share of the new Preferred Stock has terms designed to make it

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substantially the economic equivalent of one share of Common Stock.  Prior to
someone acquiring 15 percent, the Rights can be redeemed for $.001 each by
action of the Board.  Under certain circumstances, if someone acquires 15
percent or more of the Common Stock, the Rights permit Power Integrations
stockholders other than the acquiror to purchase Power Integrations Common Stock
having a market value of twice the exercise price of the Rights, in lieu of the
Preferred Stock.  Alternatively, when the Rights become exercisable, the Board
of Directors may authorize the issuance of one share of Power Integrations
Common Stock in exchange for each Right that is then exercisable.  In addition,
in the event of certain business combinations, the Rights permit purchase of the
Common Stock of an acquiror at a 50 percent discount.  Rights held by the
acquiror will become null and void in both cases.

  The Rights expire on  February 23, 2009.  The Rights distribution will not be
taxable to stockholders and will be payable to stockholders of record on March
12, 1999.

  Power Integrations, Inc. is a leading supplier of high-voltage analog 
integrated circuits for use in AC to DC power conversion. For more information, 
visit the Company's web site at: www.powerint.com or contact the Company at 477 
North Mathilda Ave., Sunnyvale, Calif. 94086; 408-523-9200. Contact: Robert 
Staples, Chief Financial Officer of Power Integrations, Inc., 408-523-9210; or 
Ellen Brook of Stapleton Communications, Inc., 650-470-0200, for Power 
Integrations, Inc.

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