ELTEK LTD — Earnings Release 2010

Feb 3, 2011

Eltek announces Q4 guidance for Eltek Valere and retains strategic financial advisors

Eltek ASA ("Eltek") today offers guidance on revenue and operating results in

the fourth quarter 2010 for Eltek Valere, which comprises the main part of the

continuing business in Eltek. The Board of Directors has retained strategic

financial advisors to assist in the evaluation of Eltek's strategic

opportunities following the divestment of Nera Networks.

On a preliminary, unaudited basis, Eltek Valere reports expected revenue in

excess of NOK 925 million for the fourth quarter 2010, which is ahead of both

the fourth quarter 2009 and the previous quarter. Gross margin in Eltek Valere

continues to develop positively.  Operating profit (EBIT) for Eltek Valere is

expected to exceed NOK 75 million in the fourth quarter. This represents a

marked increase from the fourth quarter 2009 and the third quarter 2010. Order

entry was strong in the fourth quarter, and will also show positive development

from the fourth quarter in 2009.

The Board of Directors has retained Lazard AB and Arctic Securities ASA to

assist in the evaluation of strategic opportunities following the successful

divestment of Nera Networks.

It is important to recall that certain liabilities and accounting treatments of

the Company's sale of Nera Networks in early January must still be considered.

Please refer to the announcement made January 19 for further details.  Eltek

will present the interim results for the fourth quarter and full year 2010 on

February 22, 2011. NeraTel, which is 50.1% owned by Eltek, will announce their

fourth quarter and full year 2010 on February 10, 2011.  Eltek will also

organize a capital markets day in the early Spring to discuss the Company's

strategic direction.

For further information, please contact:

CEO Jørgen Larsen, Eltek ASA, tel: +47 905 27 930

CFO Pål Skistad, Eltek ASA, tel: +47 908 50 378

About Eltek ASA:

Eltek is a strategic technology partner within power solutions and microwave

radio transmission, through its two business units Eltek Valere and Nera

Telecommunications (NeraTel).  The Company reported revenue of NOK 5.8 billion

in 2009, and had close to 3,300 employees in more than 50 countries at the end

of 2009.  Following the divestment of Nera Networks, Eltek is focused on its

core business in telecom power and power electronics solutions for industrial

applications and renewable energy markets such as solar power and electric

vehicles.  Eltek is listed on Oslo Stock Exchange and headquartered in Drammen,

Norway.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1484946]