Power-One Announces Results for the Second Quarter of 2006

Power-One, Inc. announced that for the second fiscal quarter ended June 30, 2006, net sales were $78.6 million and net income was $0.04 per share, compared with revenue and a net loss of $63.4 million and $0.17 per share, respectively, during the second quarter of 2005. Revenue and earnings for the quarter exceeded the company's guidance primarily due to rapid resolution of the supply chain issues disclosed in the first quarter, as well as continued strength in customer orders. Also benefiting second quarter results were tax benefits associated with an income tax refund as well as a favorable tax ruling in Europe, partially offset by foreign exchange losses associated with continued weakening of the U.S. dollar; the net favorable impact of these items was approximately $0.02 per share.

"We are pleased to be on track with strong revenue growth and earnings and to have successfully resolved the contract manufacturer supply issues that affected us last quarter," said Bill Yeates, Chief Executive Officer. "Our second quarter revenue was at the highest level we've seen since 2001, and bookings remained strong through the quarter. Both operating and net income are clearly improving as the major design wins previously announced with new and existing customers over the past year are now coming to fruition. Further, despite the seasonally slow Q3 we experience each year, we expect that the third quarter will be strong."

Mr. Yeates continued, "From a strategic standpoint, the company is now gaining significant momentum. Our sales organization is continuing to penetrate new customers, as evidenced by recent announcements and this quarter's results. We now have an enriched order pipeline. Our operations team, having favorably resolved our contract manufacturer's supply chain issues and successfully ramped production, is continuing to focus on material cost reductions and improving margins on our new programs. Additionally, we are continuing to manage increasing component lead times and our engineering organization is rapidly increasing our design capabilities, especially in low-cost locations, to meet customer demands. At the same time, we are continuing to promote our Z-One suite of digital power management products, with more emphasis on tier-one customers, and higher volume programs. We are seeing evidence that our intellectual property associated with this technology and the resulting products will pioneer the power management landscape in years to come."