Eltek reported stronger than expected performance in the continuing operations in the power electronics market, driven by the legacy market in telecom power and growth for industrial applications. Revenue in the continuing operations increased 11 percent to NOK 1,066 million in the fourth quarter 2011 and by 13 percent to NOK 3,565 million for the full year 2011. Profit before tax in the continuing operations was NOK 77 million in the fourth quarter and NOK 155 million in 2010.

Eltek has entered into an agreement, subject to certain conditions, to divest all its shares in NeraTel for approximately NOK 375 million, and the Income Statement reflects NeraTel's results as discontinued operations on one line after tax.

EBIT in the continuing operations increased to NOK 101 million in the fourth quarter 2011 (72) and NOK 243 million for 2011 (137), including corporate costs.

Net profit for the continuing operations was NOK 64 million in the fourth quarter and NOK 112 million for the full year. Net profit from discontinued operations was NOK 28 million in the fourth quarter and NOK 32 million for the full year. Net profit was thus NOK 92 million in the fourth quarter and NOK 144 million for the full year 2011.

The divestiture of NeraTel will allow Eltek to focus its resources on its core business areas and further develop the already strong position in the power electronics market that generated solid growth in 2011.

However, order entry declined towards the end of the year and the order backlog at the end of 2011 was lower than the previous year. Market visibility remains unclear in our industry, due to the high global economic uncertainty.

The proposed divestment may open for payment of an extraordinary dividend from Eltek ASA once the transaction is completed. The size and timing remains to be decided before a dividend proposal will be presented for an extraordinary general meeting for approval.

Please find enclosed the interim report for the fourth quarter and full year 2011 on http://www.newsweb.no.

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