OnLine Power Supply (fka OPWR)

[jmhollen]

Online Power Supply Announces Release of New 48-Volt, 1,000-Watt Power Supply That is Dramatically Smaller, Lighter and More Efficient Than the Competition

ENGLEWOOD, Colo., Dec 11, 2001 /PRNewswire via COMTEX/ -- OnLine Power Supply,
Inc. (OTC Bulletin Board: OPWR), announced today the release of its
revolutionary new isolated 48-volt AC to DC power supply.

Prototypes for evaluation of the 1,000-watt power supply are being shipped to
original equipment manufacturers (OEMs), who have expressed continued interest
in the new product during the design and testing phase.

The release marks a milestone for OnLine Power Supply, which has been developing
and testing the 48 Vdc power supply -- the first in a family of new OPS products
-- for three years.

"This may be the most important event in our company's history. All of our
research, discovery, hard work and persistence is paying off," said OPS CEO Kris
Budinger. "We're excited to start production and get power supplies into our
customers' hands so they can create new generations of smaller, more powerful,
more efficient products."

The 48 Vdc power supply incorporates OPS' sophisticated new Distributed Power
Magnetics(TM) (DPM) technology, the first significant breakthrough in power
supply development in 23 years. This patented/patent pending technology results
in AC to DC power supplies that are dramatically smaller, lighter, cooler and
more efficient than anything else in this niche. DPM also provides superior MTBF
(mean time between failure) statistics. Marketing is geared toward the top 50
electronics and telecommunications companies in North America and work is under
way with OEMs to secure long-term design-in business for the 48 Vdc power
supply.

"An OEM that can reduce the costs of heating, ventilation and air conditioning,
the costs of maintenance, and the costs of real estate, ultimately creates value
for the customer. Consequently, a power supply meeting all of these
specifications (efficiency, availability, volume, and weight) would clearly
attract the attention of most any OEM," said Andrew Huang, Power Electronics
Research Analyst at CIBC World Markets Corp. "The real beneficiary of this
product will be the data center manager, whose primary concern is total cost of
ownership."

The new unit provides packaged power efficiency of about 91 percent, meaning
only 9 percent of the energy created is lost through heat dissipation. This is a
dramatic improvement over the current industry standard of 75 to 85 percent
efficiency.

The 48 Vdc power supply is .99 power factor corrected and provides a packaged
power density of 15 watts per cubic inch, giving design engineers more power in
a box one-third the size of competitors' models. It also provides a significant
weight reduction, compared to competitors' products. The 1,000-watt OPS 48 Vdc
power supply weighs less than 3 pounds, while competitors' 500-watt units weigh
between 4 and 6 pounds.

"A manufacturer can fit three of our power supplies in the same space it
currently takes for just one of the competition's products," said OPS' Steve
Watt, 48-Volt Project Manager. "Using our product, system designers will have
two to three times more power in the same footprint. This frees up room for more
components, or allows for a smaller overall product."

To understand the significance of this new power supply, think about a server,
the device that operates the computer networks at most large companies. Inside
the server case are: a power supply, circuit board, processors, memory, hard
drives, CD drives, and cards for video, sound and graphics, etc. Each of these
components generates heat and must be kept within a specific operating
temperature, usually assisted by a cooling fan. If it gets too hot inside the
server case, the system will malfunction or shut down.

Over the last 36 years, technology has generally kept pace with Moore's law,
which says that processor speed doubles every 18 months. Microprocessors, memory
chips, device cards and other components have all advanced at this rapid pace,
and with increased performance has come increased heat.

Until now, power supply technology hasn't kept pace with Moore's law. OPS' 48
Vdc power supply represents a quantum leap that puts power supplies on pace with
the rapid developments in the rest of the electronics industry. Looking back at
the server example, OPS' DPM technology allows designers to add more power to
the system in less space. And unlike others, OPS' power supplies generate added
heat in a smaller proportion to the increase in power. That means designers can
add more user-friendly features and components without exceeding the thermal
budget (the system's cumulative operating temperature). The end result is a
smaller, faster, cooler, more powerful server.

"The customer is going to appreciate the enhanced capabilities our products
offer without cost penalties. They solve real world problems in a cost-effective
manner," said Chris Riggio, OPS' Vice President of Discovery.

Servers are just one example of the applications for this new power supply. This
breakthrough power supply could provide real solutions and advances in products
for the telecommunications and data storage industries, as well as in ATMs and a
host of other high-tech products.

"Elements of this product such as power density, efficiency, size, simplicity
and MTBF lend themselves to reliability," Riggio said. "It's a tremendous cost
benefit because the customer doesn't have to spend as much to cool things."

Dick Doyle, P.E., of Doyle and Associates in La Jolla, Calif., said OPS' 48 Vdc
power supply offers several advantages over the competition.

"This is new technology to the power industry. It's the latest and greatest in
terms of temperature and speed of switching," said Doyle, who has evaluated
power supplies from 10 to 20 manufacturers over the last 15 years.
"Specifically, the technology that's incorporated allows the system to provide
reliable power over a wide range of voltages and loads at high temperatures. And
it provides high efficiency with consequently low energy dissipation."

The OPS engineering team has been testing the 48 Vdc power supply in preparation
for UL certification. Pre-production work at the manufacturing plant will begin
in the coming weeks.

OnLine Power Supply holds a U.S. patent for the process of producing AC to DC
power supplies that provide efficiencies of up to 97 percent, power densities of
more than 16 watts per cubic inch, operating temperature ranges of -40 to +85
Celsius, all with no thermal deration. This technology is called Distributed
Power Magnetics(TM) (DPM) and is the first significant breakthrough in power
supply in over 23 years. The sophisticated DPM products also operate without
cooling fans or extraneous heat sinks and boast impressive MTBF statistics, all
in the lightest and smallest footprint available for their particular
configurations. Benefited industries include telecommunications, data
communications, networking and industrial. For additional information, visit
www.onlinepowersupply.com , or call 1-800-445-4824. To obtain digital
photographs and other digital artwork related to this release, send an e-mail to
OPS Media Relations Manager Scott Maxwell [e-mail], or visit
www.onlinepowersupply.com .

Statements contained in the news release that are not historical facts are
forward looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties, which would cause actual results to differ materially
from estimated results. Such risks and uncertainties are detailed in the
Company's filings with the Securities and Exchange Commission.

For further information, please contact: Scott Maxwell, Media Relations Manager
of OnLine Power Supply, Inc., [phone], [e-mail],
www.onlinepowersupply.com; or FOR FINANCIAL INQUIRIES ONLY: KC Ingraham,
[e-mail], or Jay Pfeiffer, both of Pfeiffer High Public Relations,
Inc., [phone].





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