Del Global Technologies to Consolidate Power Conversion Group Operations to Valhalla, New York.

Business Editors

VALHALLA, N.Y.--(BUSINESS WIRE)--July 22, 2002

Announces Conclusion of GE Medical Systems Contract at

Power Conversion Group

Reiterates Revenue Outlook for Fiscal 2002 and Fiscal 2003

Del Global Technologies Corp. (DGTC) ("Del") today announced a plan to consolidate most of the operations of the Company's Power Conversion Group from Hicksville, NY to its Valhalla, NY headquarters.

This decision is one of several specific initiatives that have been under study to strengthen Del's business operations and improve the long-term performance of both the Power Conversion Group and Del.

As noted previously, Del had a history of acquiring smaller companies in the same or related fields, but did little to integrate these acquisitions. This lack of integration perpetuated different design platforms, redundant activities and divergent focus. In the last year the Power Conversion Group has been working to rationalize these inefficiencies and leverage its high voltage engineering core competency. Particular attention has been given to engineering design and product structure, manufacturing process efficiency, material management practices and working capital and asset utilization.

The consolidation to Valhalla will strengthen the Company's high voltage design and product delivery capabilities, streamline and improve operations, reduce costs and simplify organization structure. In summary, these changes will enhance Del's ability to meet customer needs and provide value-added products and services.

As a first part of this plan, the engineering function at Hicksville was transferred to Valhalla during the third quarter of Fiscal 2002, ended April 27, 2002. Sales, marketing, accounting and administrative functions will transition to Valhalla over the next three months, followed by the transfer and integration of strategic product lines by December 2002. The Company expects that certain non-strategic product lines will remain in Hicksville for the present as rationalization studies and product re-design efforts continue.

Once the integration is complete, Del expects to realize approximately $2 million in annual savings related to a reduction in fixed overhead costs. Management expects to realize partial benefits from this consolidation in the first and second quarters of Fiscal 2003, ending October, 2002 and January, 2003, respectively, with the full benefit realized in calendar 2003.

Commenting on this decision, Samuel E. Park, President and Chief Executive Officer of Del, stated, "Del Power Conversion's competitive advantage resides in our high voltage engineering core competency; this consolidation allows us to fundamentally improve our business structure as well as integrate our engineering, sales, marketing and operations capabilities into a unified organization."

Del currently employs approximately 95 people at its Hicksville facility. Certain employees will be offered employment in Del Power Conversion's Valhalla, NY facility and its RFI facility in Bay Shore, NY. A portion of the Hicksville employees will be offered severance.

Del expects to incur facilities reorganization charges related to the consolidation of between $2 and $2.2 million during the fourth quarter of Fiscal 2002, ending August 3, 2002. The cash portion of these charges will approximate $1.2 million and will consist primarily of severance and lease costs. Non-cash charges of approximately $900 thousand will consist principally of a write off of certain fixed assets.

Power Conversion Contract

Del also disclosed that GE Medical Systems had notified Del of its plans to in-source work being performed by Del's Hicksville facility to one of its own plants. As a result of this change, the Company's current agreement to assemble power supply subsystems for GE Medical Systems' MRI units is scheduled to conclude by the end of October 2002. This contract generated approximately $8 million in revenues in the most recent 12-month period.

Commenting on the GE decision, Daniel J. Pisano, President of Del's Power Conversion Group, said, "While we are disappointed to lose this contract, the activities being performed involve Del acting as an assembler of components that are proprietary to GE Medical Systems. This activity does not fit into Del Power Conversion's long-term strategy of providing customers with value-added service, where we provide product design and engineering at much higher margin."

Outlook for Fiscal 2002 and Fiscal 2003

Thomas Gilboy, Del's Chief Financial Officer, stated, "Our sales projection for Fiscal 2002 is between $97 and $98 million, within the range we previously indicated of between $97 and $100 million. For Fiscal 2003 we are still expecting sales between $108 and $112 million. We had not previously anticipated the decline in the GE contract revenues in our forecasts, but the decline we now expect in FY 2003 has been offset by increases in expected sales from other sources, including the receipt of approximately $4 million additional Explosion Detection Systems (EDS) contracts, and projections of other EDS orders to come.

In terms of profitability, we expect substantially lower S, G & A costs related to lower accounting fees and the absence of the unusual charges we incurred in Fiscal 2002, including those related to the class action litigation settlement. We will incur between $2 and $2.2 million in facilities reorganization charges related to the consolidation in the fourth quarter of Fiscal 2002, but this consolidation is also expected to produce approximately $2 million in annual savings related to a reduction in fixed overhead costs beginning in the second half of Fiscal 2003."

Del Global Technologies Corp. is primarily engaged in the design, manufacture and marketing of cost-effective medical imaging and diagnostic systems consisting of stationary and portable x-ray systems, radiographic/fluoroscopic systems, dental imaging systems and proprietary high-voltage power conversion subsystems for medical and other critical industrial applications. Industrial applications for which Del supplies power subsystems include airport explosives detection, analytical instrumentation, semiconductor capital equipment and energy exploration.

Statements about future results made in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. The Company cautions that these statements are not guarantees of future performance. They involve a number of risks and uncertainties that are difficult to predict including, but not limited to, the ability of the Company to implement its business plan, management changes, changing industry and competitive conditions, obtaining anticipated operating efficiencies, securing necessary capital facilities, favorable determinations in various legal and regulatory matters and favorable general economic conditions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's filings with the Securities and Exchange Commission.