Vicor Corporation announced that it is commencing a "Modified Dutch Auction" tender offer to repurchase shares of its Common Stock valued at up to $20 million, as announced on November 19, 2012. The tender offer is scheduled to expire, unless extended, at 11:59 P.M., Eastern Standard Time, on December 21, 2012.

With the Modified Dutch Auction structure, holders of shares of Vicor common stock will have the opportunity to tender some or all of their shares at a price no greater than $5.38 per share and no less than $4.30 per share. Based upon the number of shares tendered and the prices specified by the tendering holders, the Company will determine the lowest per share price that will enable it to buy the maximum number of shares, properly tendered and not properly withdrawn, valued in aggregate at $20 million. All shares accepted for payment will be paid the same price. Assuming the $20 million value of the tender offer, at the minimum price of $4.30 per share, Vicor would repurchase approximately 4.7 million shares if its registered, publicly traded common shares, representing approximately 15.5% of such shares, and approximately 11.1% of total common shares, which includes shares of Class B Common Stock not subject to the tender offer. The maximum price of $5.38 represented a premium of approximately 5.0% to the closing price on the NASDAQ Stock Market of $5.12 per share on November 19, 2012, the date of the Company's announcement of its intent to commence the tender offer, and an approximately 2.5% discount to the closing price on the NASDAQ Stock Market of $5.52 per share on November 23, 2012, the last trading day before today's commencement of the tender offer.

The tender offer is not contingent upon obtaining financing or any minimum number of shares being tendered. The tender offer is subject to a number of other terms and conditions specified in the Offer to Purchase to be distributed to shareholders. Shareholders whose shares are purchased via this tender offer will be paid the determined purchase price per share net in cash, without interest, after the expiration of the tender offer.

The Information Agent for the offer is Georgeson, and the Depositary is Computershare Trust Company, N.A. None of the Company, its Board of Directors, the Information Agent, nor the Depositary is or will be making any recommendation to shareholders regarding a course of action in response to this tender offer. Shareholders must determine the number of shares they will tender, if any, and the price within the stated price range at which they will offer their shares for purchase by Vicor Corporation.

The share purchase will be funded with existing cash. All shares purchased via this tender offer will be cancelled.