Digital Power Reports Financial Results for the Third Quarter Ended

September 30, 2010


FREMONT, Calif., Nov. 3, 2010 /PRNewswire-FirstCall/ -- Digital Power Corporation (NYSE Amex: DPW) today announced its financial results for the third quarter ended September 30, 2010.

Revenues increased by 87% to $3,186,000 for the quarter ended September 30, 2010, compared to $1,708,000 for the quarter ended September 30, 2009. Gross margins increased to 36.1% for the quarter ended September 30, 2010, compared to 30.0% for the quarter ended September 30, 2009. Net income was $303,000 for the quarter ended September 30, 2010, compared to a net loss of $205,000 for the quarter ended September 30, 2009.

Commenting on the results, Amos Kohn, President and CEO, stated, "We are very pleased to report very strong growth in revenue and net income for our third quarter. In addition to a significant increase in both commercial and military product revenues, we posted production level revenues of one of our first full custom developments. This is in line with our earlier stated strategic decision to reduce our dependence on standard, commodity products. Further, we began the delivery of another custom solution powering fiber optic broadband network. This challenging design requirement filled a need for a wide range unique AC quasi-square wave input, operating over an extreme temperature range with free convection cooling."

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 are located at 41324 Christy Street, Fremont, California, 94538-3158

Contact: Assaf (Assi) Itshayek, CFO, 510-657-2635
Website: www.digipwr.com.


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