Digital Power Corporation Reports Financial Results for the Fourth

Quarter and the Year Ended December 31, 2011

FREMONT, Calif., March 29, 2012, Digital Power Corporation (NYSE Amex: DPW - News) today announced its financial results for the fiscal year 2011 and for fourth quarter and for the year ended December 31, 2011.

Digital Power’s revenues for the year ended December 31, 2011 were $11,231,000, an increase of 8% from revenue of $10,396,000 for the year ended December 31, 2010. Net income for the year ended on December 31, 2011 was $1,124,000 an increase of 131% or $637,000 over the profit of $487,000 in the year ended on December 31, 2010. Gross margin in 2011 was 40%, an increase from 35% reported in 2010.  

Digital Power Corporation reported net income of $97,000 for the three months ended December 3l, 2011, compared to net income of $213,000 for the three months ended December 31, 2010. Operating income equaled $68,000 for the fourth quarter of 2011, compared to operating income of $165,000 for the fourth quarter of 2010. Digital Power reported revenues of $2,057,000 for the quarter ended December 31, 2011, a decrease of 33% from a revenue of $3,072,000 in the comparable quarter in 2010.

Commenting on the results, President and CEO, Amos Kohn, stated: “We are pleased with our fiscal performance. During the year ended on December 31, 2011 and the fourth quarter, we generated revenues from the sale of customized product solution for medical and broadcast application, as part of our earlier strategy to develop full custom power solutions and enhance our standard products line to higher power switchers in a smaller form factor.

"We continued to expand our presence in the market place as we were rewarded by several new full custom design projects to develop and supply power solutions for the medical and industrial markets. In addition, we developed and launched power rectifier systems to international naval fleets. We will continue to focus on solution driven applications for our major vertical markets including telecom, medical and military and industrial market segments". Mr. Kohn continues: “Going forward, we will continue expanding our capabilities accelerating our development and releases of even more advanced leading power products."

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 41324 Christy Street, Fremont, California, 94538-3158; Contact: Leo Yen, Investor Relations, 510-657-2635; Website:

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