Digital Power Corporation, Through Its Subsidiary Gresham, Wins Major Defense Contract in Australia Over $2 million project to supply helicopter

Digital Power Corporation (DPC) announced that its wholly-owned Salisbury, UK subsidiary, Digital Power Limited (DPL), has been awarded a major contract for the Australian Navy. DPL operates under the name Gresham Power Electronics (Gresham).

Gresham has been selected to supply helicopter starting rectifiers and DC power distribution systems for the new Air Warfare Destroyer (AWD), which will be built by Australia's largest specialized defense shipbuilding organization. The AWD is based on the existing F100 frigate platform, and already is in service with the Spanish navy. It is a baseline design that requires minimal modifications for Australian use. The AWD incorporates a modified version of the power system models that Gresham has provided to Spain in support of its F-100 program.

The primary role of an air warfare destroyer (AWD) is to control air, surface and subsurface environments. To do so, its missions will involve providing air defense for accompanying ships, land forces and nearby coastal infrastructure. Other missions will include collecting and evaluating of intelligence, performing law enforcement operations, assisting in evacuations and performing diplomatic operations. Once deployed, an AWD is capable of operating in all weather conditions and can launch helicopters from its deck.

This Australian contract will be in effect over the next three years.

Jake Moir, managing director of Gresham Power Electronics, says, "This effort is one of the most significant shipbuilding projects to be undertaken in Australia. In these challenging times, we are delighted to have been awarded this major contract. It is continuing evidence of the quality and reliability of our world-class power conversion and distribution systems and our ongoing commitment to produce innovative and cost-effective solutions for these challenging defense applications."

Amos Kohn, president and CEO of DPC, comments, "We are extremely pleased with the growth of DPC's subsidiary Gresham in the international defense market as Gresham continues to expand its power technology to AWDs worldwide.

Gresham also is in discussions with a shipbuilder for the Indian navy to provide specialized charging systems to be installed in the Indian navy's submarines.

About Digital Power Limited

Digital Power Limited is based in Salisbury, England, and operates under the name Gresham Power Electronics. The company is a wholly-owned subsidiary of Digital Power Corporation, a publicly traded corporation (NYSE AMEX: DPW) with corporate offices at Fremont, California.

Gresham Power Electronics has been involved in power conversion for almost 60 years. Its facility in Salisbury, England has fully-approved design and manufacturing capabilities for commercial and military power products. Gresham Power also provides European sales and application support for its partner companies, Digital Power Corporation and Telkoor Power, which provide cutting-edge, high efficiency, and high power system solutions to diverse industries. Gresham Power has a thriving European distribution business, which enables it to offer a "one stop shop" for power conversion products. The company's website is www.greshampower.com