Revolutionizing Power: The Digital Power Evolution

1. Digital “Bytes” into Board-Level Power Market Telecosm 2005: The Singularity is Here Steve Goldman, CEO & Chairman, Power-One, Inc.

2. Communications Infrastructure is Powered by Our Power Conversion Products AC/DC Power Powers Telecom, Networking & Industrial Equipment Controls Power at the System Cabinet DC/DC Power& Recently Announced Digital Power Management Controls Power on Printed Circuit Board

3. Power-One Today • Profitability in Q3’05 is “On Track” • AC/DC front-end Business is Strong • Successfully Penetrated The Storage Market • Telecom System Business Gaining Strength • Several New Networks Being Rolled Out, Wi-FI Max….. • Z-one™ Digital Power Management Is Gaining Momentum • Z-alliance Advancing, In Active Negotiations With Additional Partners • C&D Technology (world’s 3rd largest DC/DC supplier) • Atmel (world-class semiconductor company) • Strong Balance Sheet (~$80M in cash- no debt) • Revenues of $280M in 2004 • Started Investment in Digital Power in 2001

4. A Digital Power Revolution Changing the Shape of Power

5. Quick, What’s the Acronym “DVD” Stand for? • Of course – Digital Versatile Disc, but we knew that, right? • And just like the world of analog VHS changed dramatically to DVD, the power world is starting to feel the effects of the digital revolution. • Who today has an analog cell phone? Yet just a few years ago, they were ALL analog. Now, digital phones connect with the internet, take pictures, etc.– all functions that digital technology makes possible at very low cost . • So… Do we really think power will be different than every other kind of electronics – HDTV, digital cameras, TIVO, music, or entertainment? • And just like the examples mentioned, the functionality is incredibly expanded – at a lower cost than thought possible. • So where will the industry go…. For new designs, when the cost is less, for greater functionality will they be digital or analog?

6. Why this digital revolution in power you ask? Well, if you lived in California (or almost any city)…

7. You know that for the real estate market, it’s all about…“Location, Location, Location” For the electronics market it’s now all about… “Cost, Cost, Cost”

8. As Technology Matures Everything Revolves Around Cost! Conversion Communications Control • TTM (time to market) cost • Board space cost • Component cost • Production cost • Test cost • R&D cost Increased Functionality At Lower Cost Digital Is Less Costly Than Analog For Medium To Complex Systems!

9. R&D Costs – An Example • With digital technology, engineers can design power module applications in: • 10% of the time with 90% fewer components with the Z-One™ digital power system, versus traditional analog • Add that digital can save approximately 50% of PCBreal estate and changes are easy to make (programmable) • Board-level analog solutions become increasingly more difficult & costly with increasing power management requirements, such as lower voltages, turn on/off sequencing, monitoring, measuring & controlling • Digital power management and conversion can save significant costs for mid/high-level systems;

10. Less Engineers – More Work • What makes digital power even more practical is that there are fewer analog and power engineers. Engineering schools today emphasize digital subjects. • With digital power, even non-power design engineers can set up and configure their system relatively easy – GUI interfaces and programming make it easy and cost-effective. • Customer’s system engineers can now handle more workload with fewer, but more efficient engineers

11. Analog or …

12. Digital … You Choose A Digital Power Revolution

13. Customers Benefit With Lower Costs • Customers, too, are quickly discovering the cost and system benefits of digital power: • They can design AND emulate their systems without costly and time-consuming re-engineering, re-layout and re-testing of PCB’s, • With a truly digital power system, if changes are needed, the real-time monitoring of all voltages, currents, and even temperatures, offers total control of the power delivery to the system • Digital power is an elegantly simple solution for many medium to complex systems…..added functionality at a lower cost

14. Why Are We Even Discussing Digital Power?Customers Want MORE! • Power Management: • Fault Management • Thermal Management • Optimization • Measure/Control Higher Currents More/Lower Voltages

15. Digital Versus Analog (Board-Level Products)

16. We Are NOT Saying “Analog Is Dead” • Many applications exist and will continue to exist for analog devices, for example: • Consumer • Automotive • Hand-held products • Battery chargers • Linear/switching regulators • Single voltage applications • Low-level power management

17. Detailed Functionality Comparison (BLP)

18. Analog – Gloomy Reality of a System Designer’s Life • No complete power system solutions • Multiple 3rd-party components are required to design a system • Separate Components Required for Power Conversion, Management, Monitoring, Protection, etc. • Proliferation of DC/DC converters due to high number of voltages on system circuit boards • Number of components in a power system has increased significantly • PCB real estate occupied by power conversion and management • System reliability • Off-The-Shelf converters need to be tailored to system needs • Overall cost increases with each function needed for analog power management

19. Digital – Bright Future of a System Designer’s Life! • K.I.S.S. with digital • Analog is “hard-wired”, Digital is “soft-wired” • Easily “portable” to other designs; easily changed • Only 2 unique parts required to build a complete board-level system • Reduced board space and system cost: • Can eliminate ALL external components • Improved system performance: • Fine-tune parameters to optimize performance of semi’s and system • Increased reliability of end equipment: • Fewer components (both on converter and on PCB) • Early fault detection, adaptive protection schemes • Reduced design and troubleshooting time: • No hardware changes to redesign or “tweak” the entire power system • Increased functionality – Virtually any and all power management features at “same cost”

20. Digital Power Management Capabilities ... from “A to Z” for Board-level Solutions • Simple power management requirements can use the No-bus™ “Z” with pin-strapping, where most functions are included at no additional cost • More complex power management functions can use the fully-featured Z-One™ digital power system that has been in production for over a year. • And many customers want inter-POL communications, which we already provide and … there are even more enhancements coming.

21. Choices in Cost and Functions

22. Conclusion: Innovation Can’t Be Stopped…..Digital Will “Byte” Into The Power Market • Power-One’s diZruptive technology helped start the change and we have licensed products to our Z-Alliance partners. Others are joining the world of digital power. • From the Gilder Technology Report in September, 2005: • “Power-One understood the trend early on and has become the first power-supply company to take full advantage of the Moore’s law advances to develop what today remains the only complete digital power system, including both the control and management functions”. • “…the competition, which amid brash dismissals of the technology, is engaged in a panicky drive to duplicate it.” • “The question is not whether Moore’s law advances will accelerate digital power into a revolution, but when – crucial in light of the headwinds now resisting Z-One…Power-One is already there to meet it. You should be there with them.”

23. Thank You!

24. Disclaimer & Forward Looking Statements This presentation includes forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that can be identified by the use of forward-looking words such as “will” or “estimate” or comparable words. These statements are subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from those projected. Risks and uncertainties include, but are not necessarily limited to: the Company’s success in securing customer acceptance and adoption of the Company’s products and technologies; the size and pace of growth and improvement in target and potential markets; the Company’s success in establishing and maintaining adequate and qualified manufacturing sources for supply of products; constraints and limitations in the supply chain(s) for critical components contained in Company products; the Company’s ability to achieve and sustain gross margins at levels anticipated and noted as comparable to “silicon-based” companies; the Company’s ability to continue spending at prior or desired levels for research and development related to the products and technologies discussed in this presentation; competitor advances and successes in comparable, alternative or competing technologies; the Company’s success in securing protection for intellectual property incorporated into the Company’s products and/or enforcing such intellectual property against use of same by competitors; intellectual property claims or rights of third parties which are unknown to the Company, and/or which are asserted in the future against the Company. In addition, we refer you to the Company’s most recent SEC financial filings, to include the Company’s report on Form 10-K filed with the SEC on March 18, 2005, and report on Form 10-Q filed with the SEC on August 11, 2005.