Digital Power Corporation Reports Financial Results for the First Quarter

Ended March 31, 2013

FREMONT, Calif., May 20, 2013, Digital Power Corporation (NYSE Amex: DPW - News) today announced its financial results for the first quarter ended March 31, 2013.

Digital Power’s revenues for the first quarter ended March 31, 2013 were $2,189,000, a decrease of 2% from revenue of $2,240,000 for the same quarter ended March 31, 2012.  Net income for the quarter ended on March 31, 2013 was $107,000 an increase of 43% from the profit of $75,000 in the quarter ended on March 31, 2012. Gross margin in the first quarter ended March 31, 2013 was 38%, a decrease from 41% reported in March 31, 2012. Lastly, operating income for the first quarter ended March 31, 2013 was $14,000, a decrease of 88% for the same quarter ended March 31, 2012.

Commenting on the results, President and CEO, Amos Kohn, stated: “We experienced an increase in our results for the first quarter from the prior quarter and continue to expand our domestic product portfolio. Our European operations experienced a rebound also from the prior quarter primarily from improvement of the economic environment.”

We continue to pursue our strategic plan of developing complete customized power solutions and enhancing our standard product offering with innovative, high density and efficient power supplies at ever increasing power levels. The focus of a complete solution for power applications are well received by our major telecom, medical, military and the industrial vertical markets.

About Digital Power:

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. We are highly focused on high-grade and custom product designs for both the commercial and military/defense markets, where customers demand high density, high efficiency and ruggedized products to meet the harshest and/or military mission critical operating conditions. We are a California corporation originally formed in 1969, and our common stock trades on the NYSE Amex under the symbol "DPW". Digital Power's headquarters is located at 48430 Lakeview Blvd, Fremont, California, 94538; Contact: Leo Yen, Investor Relations, 510-657-2635; Website:




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