Power-One Extends Loan Agreement For Two Years

Power-One, Inc. announced that it has reached an agreement with PWER Bridge, LLC, an affiliate of Stephens Inc., to extend PWER Bridge’s $50 million loan to the company by two years, to a maturity date of April 30, 2010.

"We are pleased to have this loan extension in place and appreciate PWER Bridge working closely with us on this important financial transaction," said Power-One’s Chief Executive Officer, Richard Thompson. "We believe we have adequate liquidity and a solid balance sheet to support both our growth strategy and our efforts to achieve sustained profitability."

"We believe this two-year extension will benefit both companies," said Curt Bradbury, Chief Operating Officer of Stephens Inc. "The new note terms meet PWER Bridge’s investment criteria and the extension provides Power-One with the capital structure to expand their markets and support their world-class customers. We welcome Richard Thompson as Power-One’s new CEO and look forward to continuing to work with the company under his leadership."

Interest on the loan will continue at the current rate of 12% per annum, with a 1% maintenance fee due on the anniversary of the extension. The company paid an extension fee of $500,000, issued time-based warrants, and granted normal security interests for the loan. Additional details on all relevant terms and conditions of the agreement relating to the loan extension will be available in Power-One’s 8-K to be filed.