Power-One Acquires Magnetek's Power Electronics Group

Power-One (www.power-one.com) has signed a definitive agreement with Magnetek (www.magnetek.com) to acquire its Power Electronics Group (PEG). Magnetek's Power Electronics Group sells power supplies and alternative energy products to a wide range of customers and markets. Under the terms of the agreement, Power-One will acquire Magnetek's PEG for $71.7 million in cash and assumption of approximately $16.7 million in debt. Power-One has obtained financing for the acquisition and the transaction is expected to close in October, 2006, subject to customary closing conditions.

"This acquisition will be additive to earnings per share, even without any synergies, and presents significant opportunities to further our strategic goals," said Steve Goldman, Chairman of Power-One. "This acquisition will increase Power-One's revenue by over 50%, and the overall purchase price of approximately 0.5x forecasted sales for 2007 makes it an excellent value. The Power Electronics Group has been an excellent contributor to Magnetek and its addition will augment Power-One in a number of ways, including adding low-cost manufacturing capability in China, custom design resources in Europe, and entry into the Alternative Energy market."

Bill Yeates, Chief Executive Officer, added, "As a result of the agreement and the excellent custom product engineering resources we acquire, we are now better positioned to service an ever-growing number of customer requests for custom products. The acquisition positions us as the 6th largest power supply company in the world. The combined purchasing power will enable us to continue to compete effectively in the higher-volume markets, including servers and storage. Additionally, through the acquisition we will have our own 230,000 square feet manufacturing plant in China that is designed for high-volume and low-cost production."

The Power Electronics Group is comprised of operations in Italy, Hungary, China and the United States with approximately 500,000 sq. ft. of manufacturing space and 1,200 employees. The Power Electronics Group sells to OEMs and includes customers such as Alcatel, Electrolux, Google, IBM, Indesit, Motorola, and Siemens. Applications include servers, storage, alternative energy, telecom systems, intelligent control products, transportation, industrial, and other related industries. Needham & Company acted as exclusive financial advisor to Power-One in this transaction.