Digital Power to Purchase Compact PCI Power Supply Intellectual

Property from Telkoor Power Systems Ltd.

Digital Power to Purchase Compact PCI 600Watts AC/DC Power Supply Series Intellectual Property from Telkoor Power Systems Ltd.

Fremont, Calif., September 22, 2010 – Digital Power Corporation (DPC), has recently announced a definitive agreement to purchase the intellectual property (IP) and production packages of the compact peripheral component interface (Compact PCI, or CPCI) 600W AC/DC power supply series from Telkoor Power Systems Ltd. (TPS) of Israel, a global leader in the development and manufacture of high-grade, high- density power supply solutions for military and commercial applications.

This purchase brings to DPC a rich portfolio of industry-leading CPCI AC/DC power supplies delivering 600W of continuous power. These hot-swappable power supplies feature N+1 redundant connection and active load current share.

Under the terms of the agreement, Digital Power Limited (DPL), a wholly-owned subsidiary of DPC, will pay approximately $500,000 in cash for the IP and production packages of the complete CPCI 600W AC/DC power supply series. This IP acquisition supports a higher power of broad range of CPCI military rugged products designed to operate in harsh environments. Specific product modifications will be also available to support exclusive customer requirements.

"The addition of this product line offers DPC and DPL a unique opportunity to expand our presence in telecom, broadcast and advanced multimedia applications that require increasing amounts of power,” said Amos Kohn, President and CEO of DPC. “Until now, such applications have needed multiple power supplies connected in parallel. By delivering 600 watts in a standard CPCI package, users can free up more rack space for revenue-earning electronics.”

About Digital Power Corporation

Digital Power Corporation is a solution-driven organization that designs, develops, manufactures and sells high-grade customized and flexible power system solutions for the most demanding applications in the medical, military, telecom and industrial markets. The company’s headquarters are located in Fremont, California, The company’s wholly-owned subsidiary Digital Power Limited is based in Salisbury, England, and operates under the name Gresham Power Electronics

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