Eltek Initiates Legal Action Against ZTE

  Eltek Initiates Legal Action Against ZTE

Business Wire

DRAMMEN, Norway -- January 24, 2013

Eltek ASA today announces legal action against Chinese telecoms equipment
company ZTE on patent infringement of Eltek’s high efficiency technology. This
is Eltek’s second recent legal move to protect its patented technology.

“To keep up with our ambition of maintaining technology leadership, we have to
make significant investments in R&D and in protection of the intellectual
property of our design and ideas. Our position as holders of the original HE
(high efficiency) technology is very important to us and we are willing to go
to great lengths to protect it,” says Morten Schøyen, chief marketing officer
at Eltek.

Eltek has started a legal offensive against several companies on patent
infringement and intellectual property rights. In November last year, Eltek
announced that it is taking another Chinese company, East UPS, to court for
illegally copying Eltek products.

Today’s legal action against ZTE is regarding infringement of a patented
design element in Eltek’s HE technology.

When Eltek developed its high efficiency technology, which is utilized in
power systems for telecom and other demanding industries, all key design
elements were protected by patents. These have gone through an extensive
application, approval and validation process. In parallel, the market has been
carefully monitored for breaches of the company’s patents.

“We have been in a dialogue with ZTE on this issue for a few months, but they
do not admit to any infringement of our patent. As a result we have to make
the court decide. We have no doubt that we have a strong case and look forward
to trying this in the Norwegian legal system,” says Schøyen.

About Eltek

Eltek is a strategic technology partner within power solutions. The Company
reported revenues of NOK 3.6 billion in 2011, and has approximately 2,400
employees in close to 40 countries. Eltek focuses on the business in telecom
power and power electronics solutions for industrial applications and
renewable markets such as solar power and electric vehicles. Eltek is listed
on The Oslo Stock Exchange and headquartered in Drammen, Norway.

Contact:

Eltek
CMO Morten Schøyen, + 47 915 17 452