Merger proposal between and

Merger proposal between and 29 May 2006

Agenda The transaction Presentation of the merged company Financials highlights Shareholder matters Timetable 2

The transaction main terms Eltek ASA ( Eltek ) and Nera ASA ( Nera ) have agreed to seek to finalise a merger agreement Exchange ratio: 1 Eltek share per 5.75 Nera shares Key conditions: Due diligence Regulatory approvals Shareholder approvals Morten Angelil will be CEO of the combined group Signing of merger plan is expected ultimo June 2006 3

The transaction Presentation of the merged company Financial highlights Shareholder matters Timetable 4

Eltek and Nera in brief Eltek ASA Nera ASA One of the world leaders in DC Power and Energy Systems to telecom operators and OEMs One of the world leaders in the field of microwave transmission and satellite communication Revenues of NOK 2,085 million in 2005 (+28%), EBIT of NOK 227 million Revenues of NOK 2,642 million in 2005 (+12%), EBIT of NOK 55 million Global company 50% of revenue from EMEA, 27% from Asia Pacific and 23% from Americas Global company 41% of revenue from EMEA, 33% from Asia Pacific and 26% from Americas Listed on the Oslo Stock Exchange, with a market cap of approximately NOK 3 bn and 1,300 employees Listed on the Oslo Stock Exchange, with a market cap of approximately NOK 1.5 bn and 1,400 employees 5

Transaction rationale The merger will create a technology equipment supplier with sustainable leading positions in Transmission Satellite communication Telecom Power Eltek -Nera will be a uniquely positioned global telecom equipment company Global coverage First tier customer base Leading engineering capabilities 6 The merger will create value, through Scale effects in sales Scale effects in sourcing and logistics Exploit synergies in overlapping functions

Strengthen the global footprint Nera sites Eltek sites Nera and Eltek are represented globally and can exploit the combined footprint Co-location opportunities exist in many countries 7 NOKm NOKm NOKm 1400 2500 1600 1200 1000 800 600 400 200 0 922 573 349 Americas 1,147 675 472 2004 2005 Eltek Nera 2000 1500 1000 500 0 1,746 917 829 EMEA 2,153 1097 1056 2004 2005 Eltek Nera 1400 1200 1000 800 600 400 200 0 1,326 870 456 Asia Pacific 1,428 870 558 2004 2005 Eltek Nera

Strong customer base for cross selling Eltek Nera 8

Nera and Eltek possess complementary strengths Both companies have Innovative and strong product portfolios Highly competent organisations Strong brand names in their niches Strong and long-lasting customer relations A higher volume base will increase leverage and improve results 9

The telecom industry is consolidating Ericsson Marconi Lucent Alcatel Telefonica O 2 Nextel Sprint Cingular AT&T Wireless AT&T SBC BellSouth Verizon MCI and more 10

and scale is increasingly important The combined company will be able to: Push more volume through the global distribution networks Wide but thin coverage in certain areas Improve its sourcing Increased purchasing power will reduce cost of goods sold Increased leverage of the R&D capabilities 11

Key focus areas for the combined company Improve the leverage on our sales channels Pursue a strong sales culture Push more volume through the network Exploit cross-selling opportunities Further deepen the customer relationships Implement best practice in production and logistics Consolidation of overlapping functions 12

The transaction Presentation of the merged company Financial highlights Shareholder matters Timetable 13

Key financials 2003 2004 2005 Combined* NOKm Eltek Nera Eltek Nera Eltek Nera 2005 1Q06 Total revenue 1,049 2,253 1,634 2,360 2,085 2,642 4,727 1,305 Revenue growth 18.1 % -7.9 % 55.8 % 5.2 % 27.6 % 11.5 % 18.1 % 37.1 % Total expenses -1,004-2,198-1,449-2,371-1,830-2,529-4,359-1,216 EBITDA 45 55 185-11 256 113 369 89 EBITDA-margin 4.3 % 2.4 % 11.3 % -0.5 % 12.3 % 4.3 % 7.8 % 6.8 % EBIT** 19-25 164-73 227 55 282 55 EBIT-margin 1.8 % -1.1 % 10.0 % -3.1 % 10.9 % 2.1 % 6.0 % 4.2 % PTP 0-17 155-62 225 53 278 74 Net income after min.int -9-53 109-86 151 11 162 39 Earnings accretive for all shareholders in 2007 Note (*): No pro forma adjustments made Note (**): EBIT excluding non-recurring items Figures for 2003 according to NGAAP, 2004 and 2005 according to IFRS 14

The transaction Presentation of the merged company Financials highlights Shareholder matters Timetable 15

Current shareholder structure Eltek Nera # Shareholder 22.05.2006 Share 1 CITIGROUP GLOBAL MARKETS INC. 7 292 233 22,42 % 2 CLEO CAPITAL AS 2 744 567 8,44 % 3 FOLKETRYGDFONDET 2 344 100 7,21 % 4 UBS (LUXEMBOURG) S.A. 2 208 503 6,79 % 5 ORKLA ASA 1 050 000 3,23 % 6 MORGAN STANLEY & CO. INC. 1 038 690 3,19 % 7 JPMORGAN CHASE BANK 1 002 634 3,08 % 8 NATIONAL FINANCIAL SERVICES LLC 682 476 2,10 % 9 SKANDINAVISKA ENSKILDA BANKEN 660 000 2,03 % 10 STOREBRAND LIVSFORSIKRING AS 627 089 1,93 % 11 MP PENSJON 541 300 1,66 % 12 Privat investor 457 500 1,41 % 13 STATE STREET BANK & TRUST CO. 365 402 1,12 % 14 COMMERZBANK AG 337 520 1,04 % 15 UBS AG, LONDON BRANCH 319 775 0,98 % 16 KLP FORSIKRING AKSJER 318 165 0,98 % 17 MLPF&S NOREWGIAN CUSTODY ACCOUNT 313 935 0,97 % 18 DEUTSCHE BANK AG LONDON 300 000 0,92 % 19 OKO OSUUSPANKKIEN KESKUSPANKKI 300 000 0,92 % 20 HSBC SECURITIES SERVICES (LUX) SA 249 656 0,77 % Top 20 shareholders 23 153 545 71,2 % # Shareholder 22.05.2006 Share 1 CREDIT SUISSE SECURITIES 14 598 425 11,82 % 2 FOLKETRYGDFONDET 14 419 700 11,67 % 3 ORKLA ASA 11 729 613 9,50 % 4 ODIN NORGE 7 564 000 6,12 % 5 CREDIT SUISSE SECURITIES 5 544 650 4,49 % 6 MORGAN STANLEY & CO. INC. 4 822 015 3,90 % 7 SKAGEN VEKST 4 701 000 3,81 % 8 SKANDINAVISKA ENSKILDA BANKEN 4 344 997 3,52 % 9 DEUTSCHE BANK AG LONDON 3 389 911 2,74 % 10 ODIN NORDEN 2 728 270 2,21 % 11 CREDIT SUISSE SECURITIES (USA) LLC 2 569 600 2,08 % 12 ARENDALS FOSSEKOMPANI ASA 2 500 000 2,02 % 13 JPMORGAN CHASE BANK 2 432 872 1,97 % 14 STYRBJØRN AS 2 000 000 1,62 % 15 NORDEA VEKST AKSJEFONDET 1 826 750 1,48 % 16 VICAMA AS 1 709 200 1,38 % 17 ISINVEST AS 1 400 000 1,13 % 18 NERA ASA 1 193 364 0,97 % 19 VITAL FORSIKRING ASA(OMLØP) 1 041 759 0,84 % 20 HOLBERG NORGE VERDIPAPIRFONDET 1 010 000 0,82 % Top 20 shareholders 91 526 126 74,1 % 16 Source: Manamind top 20

Pro forma shareholder structure post merger # Shareholder 22.05.2006 Share 1 CITIGROUP GLOBAL MARKETS INC. 7 292 233 13,51 % 2 FOLKETRYGDFONDET 4 851 874 8,99 % 3 ORKLA ASA 3 089 933 5,72 % 4 CLEO CAPITAL AS 2 744 567 5,08 % 5 CREDIT SUISSE SECURITIES NOM 2 538 857 4,70 % 6 UBS (LUXEMBOURG) S.A. 2 208 503 4,09 % 7 ODIN NORGE 1 315 478 2,44 % 8 MORGAN STANLEY & CO. INC. 1 038 690 1,92 % 9 JPMORGAN CHASE BANK 1 002 634 1,86 % 10 CREDIT SUISSE SECURITIES 964 287 1,79 % 11 MORGAN STANLEY & CO. INC. 838 611 1,55 % 12 SKAGEN VEKST 817 565 1,51 % 13 SKANDINAVISKA ENSKILDA BANKEN 755 652 1,40 % 14 NATIONAL FINANCIAL SERVICES LLC 682 476 1,26 % 15 SKANDINAVISKA ENSKILDA BANKEN 660 000 1,22 % 16 STOREBRAND LIVSFORSIKRING AS 627 089 1,16 % 17 DEUTSCHE BANK AG LONDON 589 550 1,09 % 18 MP PENSJON 541 300 1,00 % 19 ODIN NORDEN 474 482 0,88 % 20 PRIVATE INVESTOR 457 500 0,85 % Top 20 in Newco 33 491 280 62,0 % Total number of outstanding shares after the merger is approximately 54 million Eltek and Nera shareholders to own approximately 60% and 40% of the combined entity, respectively 17

The transaction Presentation of the merged company Financials highlights Shareholder matters Timetable 18

Indicative timetable Announcement Board approvals of merger plan Prospectus publication Extraordinary General Meetings Closing 29 May Ultimo June July August October 19