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Digital Power Reports Financial Results for the Fourth Quarter and the Year Ended December 31, 2008
Date:3/26/2009

ives, resulted in improved gross margins in 2008."

About Digital Power:

Digital Power Corporation designs, develops, manufactures, distributes, and sells cutting-edge high-grade power system solutions to the telecom/datacom, industrial, medical and military/defense industries. Digital Power's headquarters are located at 41324 Christy Street, Fremont, California, 94538-3158; Phone number 510-657-2635; Website: www.digipwr.com.

Forward Looking Statements

The foregoing release contains "forward looking statements" regarding future events or results within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning the Company's current expectations regarding revenue and earnings results for 2009 and the expected results of modifications to the Company's strategy. The Company cautions readers that such "forward looking statements" are, in fact, predictions that are subject to risks and uncertainties and that actual events or results may differ materially from those anticipated events or results expressed or implied by such forward looking statements. The Company disclaims any current intention to update its "forward looking statements," and the estimates and assumptions within them, at any time or for any reason.

In particular, the following factors, among others could cause actual results to differ materially from those described in the "forward looking statements:" (a) the possibility of net losses in the future; (b) dependence on Telkoor Telecom Ltd., the Company's principal shareholder, for design and manufacturing capabilities; (c) the potential ineffectiveness of the Company's strategic focus on power supply solution competencies; (d) the inability of the Company to realize the benefits of the reduction in its cost structur
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