Fremont, CA, June 20, 2011 – Digital Power Corporation (NYSE Amex: DPW) announced that it has acquired 1,136,666 shares of its largest shareholder, Telkoor Telecom Ltd. (”Telkoor”), for $0.88 per share, which represents 8.8% of the outstanding shares of Telkoor.

This transaction was made by Digital Power’s wholly-owned subsidiary, Digital Power Limited. As a result of the transaction, an existing manufacturing agreement between Digital Power and Telkoor will be updated and extended. In addition, subject to the approval of its board of directors, Telkoor intends to consider the appointment of Amos Kohn, President and CEO of Digital Power, to its board of directors, and intends to consider a policy for the payment of dividends to shareholders.

Commenting on the transaction, Amos Kohn, President and CEO of Digital Power Corporation said, ”We are pleased to report this acquisition of Telkoor’s shares. This transaction will tighten our existing business relationship and strengthen the synergy between the two companies. It also will secure Digital Power’s access to technologies and products that are developed by Telkoor. This transaction is the first step in Digital Power’s strategic collaboration plan as a leading provider of power solutions for our markets.”

About Digital Power Corporation

Headquartered in Fremont, Calif., Digital Power Corporation designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Its products are used in the most demanding telecom, industrial, medical and military applications where customers demand high density, high efficiency and ruggedized power solutions. Its wholly-owned subsidiary, Digital Power Limited, is based in Salisbury, UK.

About Telkoor Telecom Ltd.

Telkoor Telecom Ltd. (TASE: TLKR) designs, develops, manufactures, and sells high density power supply solutions for military and commercial applications. The company offers its custom designed products for electronic warfare systems, advance data links, missiles, rugged computer systems, fire control systems, radar, navigation systems, IFF systems, and other electronic defense systems. Telkoor Telecom Ltd. is based in Netanya, Israel.

Reader’s contact:
Digital Power Corporation
41324 Christy St., Fremont, CA, 94538-3158
Guy Levy
Glevy@digipwr.com
1-866-344-7697

Electronic Americas Show, Sao Paulo Brazil, March 28, 2011—Digital Power (NYSE/Amex: DPW) announces the release of its new MicroTCA 600 watt AC product, the PS-1138, an AC-DC, double–width, full-size (6 HP) MicroTCA compliant power module.

The Digital Power PS-1138 is a high-power AC module designed for use in any MicroTCA enclosure. It serves as the interface between its MicroTCA system and the system power source. The PS-1138 supports shelves, cubes, and other implementations, and complies with the PICMG MicroTCA.0 Revision 1.0 specification.

The PS-1138 accepts and conditions input power and provides functionality for powering, managing, protecting against faults, and limiting power consumptions of a MicroTCA system. The unit includes 12 AdvancedMCs, 2 carrier hubs (MCHs) to control and manage power, and 2 cooling units (CUs).

Rated at 600 W of output power, the PS-1138 supports fully populated MicroTCA systems, implements power conversion functionality, and provides 16 pairs of payload power outputs. It also features power management features to monitor and manage over/under voltage and over current. The PS-1138 power modules support advanced energy management, monitoring and diagnostic functionality, software updating, and reconfiguration.

Each payload output channel can be programmed individually for current limit with load specific values and configured as a primary, backup, or disabled channel.

Hot swappable and fully redundant operation coupled with extremely high efficiency and a wide operating temperature range make Digital Power MicroTCA PS-1138 power modules ideally suited for almost any MicroTCA application.

Key features of the PS-1138 include the following:
• 600 W output power
• 16 channels of 12 V @ 7.6 A; 16 channels of 3.3 V @ 150 mA
• Hot swappable and N+1 output redundancy
• Monitors and reports power system status
• Manages and isolates faults affecting the power system
• Provides protection against overload, short circuit, over voltage, and over temperature
• Provides power necessary for MCH and CU system elements on system bring-up
• Supports redundant IPMI (IPMB-0) communication with the MCH/carrier-manager
• Enables and provides power to AMCs, CUs, and additional MCHs
• Includes an Enhanced Module Management Controller Using two IPMBs (IPMB-A and IPMB-B)
• Meets Class B conducted emission standards
• Compliant with MicroTCA chassis standard

Amos Kohn, president and CEO of Digital Power, comments, “The Digital Power 600 W PS-1138 MicroTCA product demonstrates our commitment to continued innovation in the development of power solutions for a broad range of industries and challenging environments. Our new PS-1138 MicroTCA power supply is based on best–in-class performance criteria and its compact layout is fully compliant with the MicroTCA standard and management application”. Mr. Kohn continues, “We designed the PS-1138 MicroTCA power supply to fully integrate with MicroTCA platforms from many leading providers. The PS-1138 features plug-and-play compatibility with these platforms and can be managed by applications from leading providers of MicroTCA enclosures and chassis software management stacks”.

About Digital Power Corporation

Digital Power Corporation (NYSE/AMEX: DPW) designs, manufactures, and sells high-grade customized and off-the-shelf power system solutions. Its products are in use in the most demanding telecom, industrial, medical, and military applications. Contact: Digital Power Corporation, 41324 Christy St., Fremont, California, USA, 94538-3115. Telephone 1-866-344-7697, e-mail: sales@digipwr.com Website: www.digipwr.com.