Eltek Energy Joins With Valere Power to Create $500 Million Leader in DC Power Equipment

Business Wire, April 16, 2007

Transaction is Next Phase for Valere Power - Dallas-Fort Worth's Fastest-Growing Telecom Company

RICHARDSON, Texas -- Eltek ASA, Drammen, Norway, today announced its Eltek Energy subsidiary has agreed to acquire Valere Power, Richardson, TX, to create a $500 million provider of DC power systems to telecommunications and industrial markets worldwide.

The combined company will be called Eltek Valere and will be headquartered in the Dallas-Fort Worth area. The company will have more than 1,300 employees with sales in 100 countries and operations in 25 countries. Eltek Valere intends to investigate a separate listing of the company in the US or another major global exchange in the future.

Andy Marsh, president and CEO of Valere will be the CEO of the new company, Ken Vines, Valere's CFO, will continue in the same position with the new company. The rest of the management team will be composed of executives from both companies. All three Valere co-founders will continue with the new company.

"Valere's first five years were an exciting combination of fast growth and achieving our goal to be the industry leader in innovation and customer service. Now we have a great opportunity to build on that foundation, expand our product development and sales capabilities, and set our sights on leading the industry in market share as well," Marsh said. 'I am grateful to the Valere team for its hard work during this time and excited about what lies ahead for all of us."

Founded in 2001, Valere Power has been one of the fastest growing telecom start-ups in recent years, having recorded a 77% average annual sales growth from 2004 through 2006. The company's 2006 revenues were $88 million, and revenues in the company's first quarter of 2007 were up 44% year-on-year, powered by its innovative power supply technology, which is smaller and more efficient than competing technology. Valere counts large telephone companies such as Verizon and AT&T as customers.

"Valere's co-founders - Andy Marsh, Greg Fasullo and Vito Savino had a vision to create a leading company in the DC power space when they first approached me to finance their company in 2001," said Jeff Drazan, Valere Chairman and Managing Director of Sierra Ventures. "The merger with Eltek is the culmination of that dream."

Eltek Energy provides DC power systems, installation-related services and other power products for telecom and industrial applications. The company has experienced 26% average annual revenue growth from 2004 to 2006, compared with the single-digit growth rate for the telecom equipment industry overall. Through the acquisition, Eltek Energy more than doubles its revenues in the US market and further strengthens its position in the rapidly growing Indian market.

Both companies are among the fastest growing in the industry. The combined company will be the second largest provider of DC power systems in the world with revenues of more than $500 million.

"This is a perfect strategic match combining Valere's fast market growth and U.S. installed base with Eltek's broad product line and worldwide reach. This will give Eltek market leadership in the U.S.," said Morten F. Angelil, Eltek ASA chief executive officer. "Valere brings a high level of technical innovation and an excellent blue-chip customer base to the table. Eltek Energy and Valere are complementary in terms of customers, products and geographical exposure, and we are also excited to get a strong management team onboard."

About Eltek Energy AS

Eltek Energy is a specialist telecom energy systems supplier. Established in Norway in 1971, the company has grown organically and through mergers and acquisitions to become a leading international supplier of power solutions within telecom. Eltek Energy has strong global positions in the Americas, Europe and Asia, serving multinational, regional and national builders of telecom infrastructure. More information is at www.eltekenergy.com.

About Valere Power

Valere Power, headquartered in Richardson, TX, is an advanced AC/DC power system company with proprietary technologies that reduce power dissipation and system size, simplify installation, and offer advanced remote monitoring for telecommunications service providers and enterprises. More information is available at www.valerepower.com.