Eltek ASA: Report first quarter 2012

Eltek reported revenue of NOK 786 million for the continuing operations in the power electronics market in the first quarter 2012, reflecting a seasonal slowdown from the previous quarter. Operating profit (EBIT) was NOK 27 million and profit before tax NOK 7 million for the continuing business in the first quarter 2012.

As previously announced Eltek has entered into an agreement -subject to certain conditions- to divest all its shares in NeraTel for SGD 81.4 million. The Income Statement therefore reflects NeraTels net profit on one line as discontinued operations.

Net profit for the continuing operations was NOK 6 million in the first quarter 2012, whereas net profit from discontinued operations was NOK 32 million. Group net profit was thus NOK 38 million.

Order entry in the continuing business was NOK 847 million in the first quarter, an increase of four percent from the first quarter last year. This contributed to an increase of seven percent in order backlog during the first quarter.

Eltek currently sees a relatively high level of activity in the telecom market, with a high number of bid requests and quotes for both replacement contracts, upgrades of existing networks and new network rollouts (LTE/4G). Demand continues to be driven by higher capacity requirements, generating opportunities with both wireless and wireline operators.

Industrial Applications continues to develop positively, with the main growth contributions coming from focus areas in Power Utilities and Railway & Metro. Eltek sees significant project opportunities in large markets such as China, India and Brazil.

Eltek has realigned its Renewable operations in response to the market environment, and focuses its efforts on its own-label string inverters. Within electric vehicles Eltek currently focuses on deliveries under existing R&D contracts.

Revenue is expected to increase from the first to the second quarter 2012.

Please find enclosed the interim report for the first quarter 2012 on http://www.newsweb.no.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act).