----

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| [X]                        | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |
|----------------------------|------------------------------------------------------------------------------------------|
|                       | For the Fiscal Year Ended December 31, 2010                                              |
| or                         |
| [    ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                       | For the transition period from ___________ to ____________                               |

| NEW JERSEY                     |   | 22-1463699                                          |
|-------------------------------------|--------|-----------------------------------------------------|
| (State of  incorporation) |   | (I.R.S. Employer Identification No.) |

|  Title of Each Class              |   | Name of Each Exchangeon which Registered |
|----------------------------------------|--------|------------------------------------------|
| Class A Common Stock ($0.10 par value) |   | NASDAQ                                   |
| Class B Common Stock ($0.10 par value) |   | NASDAQ                                   |

| Indicate by checkmark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                                                                                      |  Yes [   ] |  No [X]            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                        |                           |                    |
| Indicate by checkmark if the registrant is not required to file reports to Section 13 or 15(d) of the Act.                                                                                                                                                                                                                                                                                                                  | Yes [   ]       | No [X]                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |                           |                    |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                               | Yes [X]                        | No [   ] |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |                           |                    |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Requirement not applicable to registrant prior to June 30, 2011 | Yes [   ]       | No [   ] |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |                           |                    |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.                                                             |  [   ]     |                    |

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|                                                                                                                                                                                                                                                                                        |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. |

| Large accelerated filer  [    ]                                      | Accelerated filer [X] | Non-accelerated filer [    ](Do not check if a smaller reporting company) | Smaller reporting company [    ] |
|---------------------------------------------------------------------------------------------------------|---------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                                                                    |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes [   ]        | No [X]                                                                                                  |

|  Title of Each Class |   | Number of Shares of Common Stock Outstanding as of March 1, 2011 |
|---------------------------|--------|------------------------------------------------------------------|
| Class A Common Stock      |   | 2,174,912                                                        |
| Class B Common Stock      |   | 9,527,343                                                        |

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----

----

| BEL FUSE INC.               |
|-----------------------------|
|                        |   |   |   |
| INDEX                       |
|                        |   |   |   |
|                        |   |   | Page |
|                        |   |   |   |
| Forward Looking Information | 1 |
|                        |   |   |   |
| Part I                      |   |   |   |
|                        |   |   |   |
|                        | Item 1. | Business | 1 |
|                        |   |   |   |
|                        | Item 1A. | Risk Factors | 6 |
|                        |   |   |   |
|                        | Item 1B. | Unresolved Staff Comments | 10 |
|                        |   |   |   |
|                        | Item 2. | Properties | 11 |
|                        |   |   |   |
|                        | Item 3. | Legal Proceedings | 12 |
|                        |   |   |   |
|                        | Item 4. | Reserved | 12 |
|                        |   |   |   |
| Part II                     |   |   |   |
|                        |   |   |   |
|                        | Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer |   |
|                        |   | Purchases of Equity Securities | 13 |
|                        |   |   |   |
|                        | Item 6. | Selected Financial Data | 14 |
|                        |   |   |   |
|                        | Item 7. | Management's Discussion and Analysis of Financial Condition and Results |   |
|                        |   | of Operations | 16 |
|                        |   |   |   |
|                        | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 29 |
|                        |   |   |   |
|                        | Item 8. | Financial Statements and Supplementary Data* | 29 |
|                        |   |   |   |
|                        | Item 9. | Changes in and Disagreements with Accountants on Accounting and |   |
|                        |   | Financial Disclosure | 31 |
|                        |   |   |   |
|                        | Item 9A. | Controls and Procedures | 31 |
|                        |   |   |   |
|                        | Item 9B. | Other Information | 31 |
|                        |   |   |   |
| Part III                    |   |   |   |
|                        |   |   |   |
|                        | Item 10. | Directors, Executive Officers and Corporate Governance | 32 |
|                        |   |   |   |
|                        | Item 11. | Executive Compensation | 32 |
|                        |   |   |   |
|                        | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related |   |
|                        |   | Stockholder Matters | 32 |
|                        |   |   |   |
|                        | Item 13. | Certain Relationships and Related Transactions, and Director Independence | 32 |
|                        |   |   |   |
|                        | Item 14. | Principal Accountant Fees and Services | 32 |
|                        |   |   |   |
| Part IV                     |   |   |   |
|                        |   |   |   |
|                        | Item 15. | Exhibits, Financial Statement Schedule | 33 |
|                        |   |   |   |
| Signatures                  |   | 35 |
|                        |   |   |   |
| * Page F-1 follows page 30  |   |

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FORWARD LOOKING INFORMATION

Item 1.   Business

| ·   | MagJack® integrated connector modules |
|--------------------|--------------------------------------------|

| ·   | Diplexer and triplexer filters |
|--------------------|--------------------------------|

| ·   | Power transformers |
|--------------------|--------------------|

| ·   | Discrete components |
|--------------------|---------------------|

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| ·   | Power conversion modules |
|--------------------|--------------------------|

| ·   | Integrated modules |
|--------------------|--------------------|

| ·   | Miniature fuses |
|--------------------|-----------------|

| ·   | Surface mount PTC devices and fuses |
|--------------------|-------------------------------------|

| ·   | Radial PTC devices and micro fuses |
|--------------------|------------------------------------|

| ·   | Passive jacks |
|--------------------|---------------|

| ·   | Plugs |
|--------------------|-------|

| ·   | Cable assemblies |
|--------------------|------------------|

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| ·   | I/O Interconnect – Circular Connectors, Micro D Connectors |
|--------------------|------------------------------------------------------------------|

| ·   | Compression Board to Board, Device to Board Interconnect |
|--------------------|----------------------------------------------------------|

| ·   | High speed cables |
|--------------------|-------------------|

| ·   | Enclosures |
|--------------------|------------|

| ·   | Custom cable assemblies |
|--------------------|-------------------------|

| Product Group | Function                            | Applications                                                                                                                                 |
|---------------|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| Magnetics     |
|          | MagJack® Integrated Connectors | Condition, filter, and isolate the electronic signal to ensure accurate data/voice/video transmission and provide RJ45 and USB connectivity. | Network switches, routers, hubs, and PCs used in 10/100/1000 Gigabit Ethernet, Power over Ethernet (PoE), PoE Plus, home networking, and cable modem applications. |
|          | Diplexer and Triplexer Filters      | Condition, filter, and isolate the electronic signal to ensure accurate data/voice/video transmission with maximum throughput.               | Home networking, set top box, and cable modem applications including high bandwidth video transmission and triple play applications. |
|          | Power Transformers                  | Safety isolation and distribution.                                                                                                           | Power supplies, alarm, fire detection, and security systems, HVAC, lighting and medical equipment. Class 2, three phase, chassis mount, and PC mount designs available. |
|          | Discrete Components                 | Condition, filter, and isolate the electronic signal to ensure accurate data/voice/video transmission.                                       | Network switches, routers, hubs, and PCs used in 10/100/1000 Gigabit Ethernet and Power over Ethernet (PoE). |

| Modules            |
|--------------------|
|               | Power Conversion Modules(DC-DC Converters) | Convert DC voltage level to other DC level as required to meet the power needs of low voltage silicon devices. | Networking equipment, distributed power architecture, telecom devices, computers, and peripherals. |
|               | Integrated Modules | Condition, filter, and isolate the electronic signal to ensure accurate data/voice/video transmission within a highly integrated, reduced footprint. | Broadband, home networking, set top boxes, HDTV, and telecom equipment supporting ISDN, T1/E1 and DSL technologies. Also integrated in smart meters and appliances in support of developing Smart Grid technology. |
| Circuit Protection |
|               | Miniature Fuses | Protects devices by preventing current in an electrical circuit from exceeding acceptable levels. | Power supplies, electronic ballasts, and consumer electronics. |
|               | Surface mount PTC devices and fuses | Protects devices by preventing current in an electrical circuit from exceeding acceptable levels. PTC devices can be reset to resume functionality. | Cell phone chargers, consumer electronics, power supplies, and set top boxes. |
|               | Radial PTC devices and micro fuses | Protects devices by preventing current in an electrical circuit from exceeding acceptable levels. PTC devices can be reset to resume functionality. | Cell phones, mobile computers, IC and battery protection, power supplies, and telecom line cards. |

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| Product Group | Function                 | Applications                                                                                  |
|---------------|--------------------------|-----------------------------------------------------------------------------------------------|
| Interconnect  |
|          | Passive Jacks            | RJ45 and RJ11 connectivity for data/voice/video transmission.                                 | Network routers, hubs, switches, and patch panels deployed in Category 5e, 6, 6a, and 7a cable systems. |
|          | Plugs                    | RJ45 and RJ11 connectivity for data/voice/video transmission.                                 | Network routers, hubs, switches, and patch panels deployed in Category 5e, 6, 6a, and 7a cable systems. |
|          | Cable Assemblies         | RJ45 and RJ11 connectivity for data/voice/video transmission.                                 | Structured Category 5e, 6, 6a, and 7a cable systems (premise wiring). |
|          | Compression Interface    | CIN::APSE , iQ and AMC Connectors                                                             | High density parallel interfacing.  Supporting Board-to-Board, Device-to-Board and Flex-To-Board applications – in ATE and high speed computer applications |
|          | High Speed Cables        | QSFP, QSFP+ , CX4 and 12X                                                                     |  High speed data rate transfers – supported by industry standards like Infiniband – targeting networking applications  |
|          | Connectors               | Omega series, circular connectors, Dura-Con MIL-DTL-83513, Barrier Blocks, Harness Connectors |  MIL/Aero applications, Specifically FQIS – Fuel quantity indicator system applications.Highest reliability interconnect applications  |
|          | Enclosures and Harnesses | ModICE™ and SHS Headers/Connectors                                                      |  Engine control units, transportation applications  |

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Item 1A.  Risk Factors

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| ·   | announcements of technological or competitive developments; |
|--------------------|-------------------------------------------------------------|

| ·   | general market or economic conditions; |
|--------------------|----------------------------------------|

| ·   | acquisitions or strategic alliances by us or our competitors; |
|--------------------|---------------------------------------------------------------|

| ·   | the gain or loss of a significant customer or order; or |
|--------------------|---------------------------------------------------------|

| ·   | changes in estimates of our financial performance or changes in recommendations by securities analysts regarding us or our industry |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

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Item 1B. 

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Item 2.    

| Location                                                                                                     |   | ApproximateSquare Feet                                                                                 |   | Owned/Leased |   | PercentageUsed forManufacturing |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|--------------|--------|---------------------------------|
|                                                                                                         |   |                                                                                                   |   |         |   |                            |
| Zhongshan, People's Republic of China                                                                        |   |               385,000            |   | Leased       |   | 68%                             |
| Zhongshan, People's Republic of China                                                                        |   |               118,000            |   | Owned        |   | 100%                            |
| Zhongshan, People's Republic of China                                                                        |   |                 78,000 |   | Owned        |   | 100%                            |
| Pingguo, People's Republic of China                                                                          |   |               136,000            |   | Leased       |   | 75%                             |
| Louny, Czech Republic                                                                                        |   |                 11,000 |   | Owned        |   | 75%                             |
| Dominican Republic                                                                                           |   |                 41,000 |   | Leased       |   | 85%                             |
| Cananea, Mexico                                                                                              |   |                 39,000 |   | Leased       |   | 60%                             |
| Reynosa, Mexico                                                                                              |   |                 77,000 |   | Leased       |   | 56%                             |
| Worksop, England (a)                                                                                         |   |                 52,000 |   | Leased       |   | 28%                             |
| Inwood, New York                                                                                             |   |                 39,000 |   | Owned        |   | 40%                             |
| Glen Rock, Pennsylvania                                                                                      |   |                 74,000 |   | Owned        |   | 60%                             |
| Vinita, Oklahoma                                                                                             |   |                 87,000 |   | Owned        |   | 53%                             |
|                                                                                                         |   |                                                                                                   |   |         |   |                            |
|                                                                                                         |   |            1,137,000                            |   |         |   |                            |
|                                                                                                         |   |                                                                                                   |   |         |   |                            |
| (a) Approximately 58% of the Worksop facility is designated for manufacturing use, but 30% is currently idle |

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Item 3.  

Item 4.  

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Item 5.  

| (a)   |  Market Information |
|-----------------|--------------------------|

|                         |   | Class A |   |   | Class A |   |   | Class B |   |   | Class B |   |
|------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                         |   | High    |   |   | Low     |   |   | High    |   |   | Low     |   |
| Year Ended December 31, 2010 |   |    |   |   |    |   |   |    |   |   |    |   |
| First Quarter                |   | $       | 21.80  |   |    | $      | 14.64  |    |   | $      | 24.04   |   |   | $ | 17.37 |   |
| Second Quarter               |   |    | 22.25  |   |    |   | 15.50  |    |   |   | 25.15   |   |   |   | 16.35 |   |
| Third Quarter                |   |    | 23.36  |   |    |   | 16.45  |    |   |   | 24.03   |   |   |   | 16.27 |   |
| Fourth Quarter               |   |    | 27.88  |   |    |   | 20.46  |    |   |   | 25.52   |   |   |   | 20.11 |   |
|                         |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Year Ended December 31, 2009 |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| First Quarter                |   | $       | 18.19  |   |    | $      | 7.00   |    |   | $      | 21.94   |   |   | $ | 8.79 |   |
| Second Quarter               |   |    | 15.33  |   |    |   | 10.80  |    |   |   | 17.75   |   |   |   | 12.44 |   |
| Third Quarter                |   |    | 19.30  |   |    |   | 12.85  |    |   |   | 20.65   |   |   |   | 14.78 |   |
| Fourth Quarter               |   |    | 20.70  |   |    |   | 16.80  |    |   |   | 22.11   |   |   |   | 17.23 |   |
|                         |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |   |

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Item 6

|                                             |   | Years Ended December 31,                         |    |
|--------------------------------------------------|--------|--------------------------------------------------|---------|
|                                             |   | 2010                                             |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                             |   | (In thousands of dollars, except per share data) |    |
| Selected Statements of Operations Data:          |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                        |   | $                                                | 302,539 |   |   | $ | 182,753 |   |   | $ | 258,350 |   |   | $ | 259,137 |   |   | $ | 254,933 |   |
| Cost of sales (f)                                |   |                                             | 239,185 |   |   |   | 161,454 |   |   |   | 217,079 |   |   |   | 203,007 |   |   |   | 192,985 |   |
| Selling, general and administrative expenses (g) |   |                                             | 40,443  |   |   |   | 30,055 |   |   |   | 36,093 |   |   |   | 36,117 |   |   |   | 37,800 |   |
| Impairment of assets (b) (d)                     |   |                                             | -       |   |   |   | 12,875 |   |   |   | 14,805 |   |   |   | - |   |   |   | - |   |
| Litigation charge (h)                            |   |                                             | 8,103   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Restructuring charges (c)                        |   |                                             | -       |   |   |   | 413 |   |   |   | 1,122 |   |   |   | - |   |   |   | - |   |
| Gain on sale of property, plant and equipment    |   |                                             | (352    | ) |   |   | (4,693 | ) |   |   | - |   |   |   | (5,499 | ) |   |   | - |   |
| Casualty loss (a)                                |   |                                             | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,030 |   |
| Gain (loss/impairment charge) on investments (e) |   |                                             | -       |   |   |   | 7,129 |   |   |   | (10,358 | ) |   |   | 2,146 |   |   |   | 5,150 |   |
| Interest income and other, net                   |   |                                             | 420     |   |   |   | 527 |   |   |   | 2,454 |   |   |   | 4,046 |   |   |   | 2,780 |   |
| Earnings (loss) before provision (benefit)       |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   for income taxes                     |   |                                             | 15,580  |   |   |   | (9,695 | ) |   |   | (18,653 | ) |   |   | 31,704 |   |   |   | 31,048 |   |
| Income tax provision (benefit)                   |   |                                             | 1,931   |   |   |   | (1,385 | ) |   |   | (3,724 | ) |   |   | 5,368 |   |   |   | 5,845 |   |
| Net earnings (loss)                              |   |                                             | 13,649  |   |   |   | (8,310 | ) |   |   | (14,929 | ) |   |   | 26,336 |   |   |   | 25,203 |   |
|                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:                       |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A common share - basic and diluted         |   |                                             | 1.10    |   |   |   | (0.71 | ) |   |   | (1.25 | ) |   |   | 2.11 |   |   |   | 2.03 |   |
| Class B common share - basic                     |   |                                             | 1.18    |   |   |   | (0.72 | ) |   |   | (1.28 | ) |   |   | 2.25 |   |   |   | 2.16 |   |
| Class B common share - diluted                   |   |                                             | 1.18    |   |   |   | (0.72 | ) |   |   | (1.28 | ) |   |   | 2.24 |   |   |   | 2.15 |   |
|                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared per share:               |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A common share                             |   |                                             | 0.24    |   |   |   | 0.24 |   |   |   | 0.24 |   |   |   | 0.20 |   |   |   | 0.16 |   |
| Class B common share                             |   |                                             | 0.28    |   |   |   | 0.28 |   |   |   | 0.28 |   |   |   | 0.24 |   |   |   | 0.20 |   |
|                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   | As of December 31,                               |    |
|                                             |   |                                             | 2010    |   |   |   | 2009 |   |   |   | 2008 |   |   |   | 2007 |   |   |   | 2006 |   |
|                                             |   | (In thousands of dollars, except percentages)    |    |
| Selected Balance Sheet Data and Ratios:          |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital                                  |   | $                                                | 157,296 |   |   | $ | 167,833 |   |   | $ | 163,985 |   |   | $ | 173,171 |   |   | $ | 144,677 |   |
| Total assets                                     |   |                                             | 277,172 |   |   |   | 245,946 |   |   |   | 261,784 |   |   |   | 293,860 |   |   |   | 268,497 |   |
| Stockholders' equity                             |   |                                             | 220,333 |   |   |   | 208,932 |   |   |   | 217,773 |   |   |   | 244,527 |   |   |   | 222,150 |   |
| Return on average total assets (i)               |   |                                             | 5.22    | % |   |   | -3.32 | % |   |   | -5.17 | % |   |   | 9.34 | % |   |   | 9.65 | % |
| Return on average stockholders' equity (i)       |   |                                             | 6.37    | % |   |   | -3.88 | % |   |   | -6.23 | % |   |   | 11.30 | % |   |   | 11.81 | % |

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| (a) | During 2006, the Company incurred a loss of $1.0 million as a result of a fire at its leased manufacturing facility in the Dominican Republic.  The loss was for raw materials and equipment in excess of estimated insurance proceeds.  The production at this facility was substantially restored during 2006. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | During the third quarter of 2009, the Company conducted an interim valuation test related to the Company’s goodwill by operating segment.  As a result of the reduction in fair value of the Asia operating segment, the Company recorded charges of $12.9 million related to the impairment of goodwill of its Asia operating segment during 2009.  During the fourth quarter of 2008, the Company conducted its annual valuation test related to the Company's goodwill by operating segment.  As a result of the reduction in the fair value of the North America operating segment, the Company recorded charges of $14.1 million related to the impairment of goodwill of its North America operating segment during 2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | During 2008, the Company ceased its manufacturing operations in its Westborough, Massachusetts facility.  In connection with this closure, the Company incurred severance costs during 2008 of $0.6 million and lease termination costs of $0.5 million.  The Company incurred an additional $0.4 million of restructuring costs in 2009 related primarily to the facility lease obligation. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | During 2008, the Company incurred fixed asset impairments of $0.7 million related to assets located at the Westborough, Massachusetts facility which ceased operations as of December 31, 2008.  This charge is included in Impairment of Assets in the Company’s consolidated statement of operations for the year ended December 31, 2008. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | During 2009, the Company realized a net gain for financial reporting purposes of $7.1 million related to the sale of its investments in Toko, Inc. and Power-One, Inc and the final redemptions of its investment in the Columbia Strategic Cash Portfolio.  During 2008, the Company recorded other-than-temporary impairment charges and realized losses of $10.4 million related to its investments in Toko, Inc., Power-One, Inc. and the Columbia Strategic Cash Portfolio.  During 2007, the Company realized a gain from the sale of Toko, Inc. common stock in the amount of $2.5 million, offset by an other-than-temporary impairment charge of $0.3 million related to its investment in the Columbia Strategic Cash Portfolio.  During 2006, the Company realized a gain principally from the sale of Artesyn common stock in the amount of $5.2 million. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | During 2009, the Company incurred a $2.0 million licensing fee in connection with the settlement of the Murata lawsuit. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (g)   | During 2009, the Company incurred $0.6 million in acquisition costs related to the acquisitions of Bel Pingguo and Cinch Connectors.  During 2010, the Company incurred an additional $0.3 million of acquisition costs related to Cinch. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | During 2010, the Company recorded a litigation charge in the amount of $8.1 million in connection with the SynQor lawsuit, as further described in Item 3. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Returns on average total assets and stockholders’ equity are computed for each year by dividing net income (loss) for such year by the average balances of total assets or stockholders’ equity, as applicable, on the last day of each quarter during such year and on the last day of the immediately preceding year. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 7. 

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| ·   | Cinch Acquisition – The acquisition of Cinch in January 2010 has allowed the Company to broaden its customer base into the military, aerospace and transportation industries.  The Cinch products are among the Company’s interconnect product group which generally use lower-cost materials and generate higher profit margins than Bel’s other product groups.  The Company believes the integration of the Cinch products has had, and will continue to have, a favorable impact on Bel’s overall profit margin. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reduced Backlog - Bel’s backlog of orders was $109 million at December 31, 2010, reflecting an 18% decrease from June 30, 2010.  This decrease was primarily due to the Company’s ability to manufacture and deliver our products with shorter lead times, while a smaller portion of the reduction was due to the cancellation of orders by customers, primarily during the third quarter.  Bel’s backlog of orders at February 28, 2011 was $100 million, a decrease of 8% from December 31, 2010, primarily due to some easing in the availability of components, which has improved our ability to ship modules products. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pricing and Availability of Materials – While the Company has seen component pricing and availability stabilize in the latter half of 2010 for most of Bel’s product lines, the Company continues to experience some component shortages in it modules product line which limits Bel’s ability to deliver its DC-DC products.  In addition, the costs of certain commodities associated with our raw materials, such as gold and copper, have increased.  Fluctuations in these prices and other commodity prices associated with Bel’s raw materials will have a corresponding impact on Bel’s profit margins. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Workforce Volatility – Bel increased its workforce by over 4,000 workers during late 2009 and into 2010 to accommodate the substantial increase in demand for Bel’s products.  The Company experienced higher labor costs through the first half of 2010 due to training costs, overtime and production inefficiencies associated with hiring these new workers.  These increased labor costs stabilized during the third quarter, as the training periods generally ended and production efficiencies were restored. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Labor Costs – In addition to increases in labor costs due to the mostly new workforce, the costs of labor, particularly in the PRC where several of Bel’s factories are located, have been higher in recent years as a result of government mandates for new higher minimum wage and overtime requirements.  The PRC government increased minimum wage levels by 21% in the areas where Bel’s factories are located effective May 1, 2010.  While Bel has implemented price increases to its customers during 2010 to partially offset the existing increases in labor and material costs, there is an additional government mandate effective March 2011 which will increase the minimum wage level by 18% at certain of Bel’s facilities in the PRC. The Company anticipates that this increase and any additional increases to the minimum wage levels will have a negative impact on Bel’s profit margins in future quarters. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Impact of Lunar New Year – As described above, the Company has limited visibility as to the percentage of experienced workers who will return after the Lunar New Year holiday, which occurred in early February 2011.  The current lead time for Bel products is averaging 8-12 weeks.  If a large percentage of workers do not return, this will stretch out lead times for our products and will drive up labor costs as the Company will incur additional recruiting and training expenses, as well as overtime to meet demand. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Product Mix – The Company is beginning to see a shift in product mix, with the largest growth during 2011 expected in the modules product line.  The products in this line have a higher material content, which results in lower profit margins than the Company’s other product lines.  A large increase in this product line coupled with flat to minimal growth in other product lines would result in a lower overall profit margin percentage in 2011. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Acquisition-Related Costs – In connection with the acquisition of Cinch in January 2010, the Company incurred $0.3 million in acquisition-related costs and $0.8 million in inventory-related purchase accounting adjustments during 2010.  Bel continues to look for potential acquisition opportunities.  Any future acquisitions, including the proposed acquisition of Pulse Electronics as further described in the Liquidity and Capital Resources section, would give rise to additional legal and professional fees and could result in various purchase accounting adjustments. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | 2010   |    |   | 2009   |   |   | 2008 |   |
|---------------------------------------|--------|--------|---------|--------|--------|--------|--------|------|--------|
|     North America |   | $      | 111,888 |   |   |   | 37     | %    |   | $ | 41,898 |   |   |   | 23 | % |   | $ | 67,380 |   |   |   | 26 | % |
|     Asia          |   |   | 156,635 |   |   |   | 52     | %    |   |   | 123,764 |   |   |   | 68 | % |   |   | 165,164 |   |   |   | 64 | % |
|     Europe        |   |   | 34,016  |   |   |   | 11     | %    |   |   | 17,091 |   |   |   | 9 | % |   |   | 25,806 |   |   |   | 10 | % |
|                                  |   | $      | 302,539 |   |   |   | 100    | %    |   | $ | 182,753 |   |   |   | 100 | % |   | $ | 258,350 |   |   |   | 100 | % |

|                                  |   |   |   |   |   |   |    |   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|                                  |   | 2010   |   |   | 2009   |   |    | 2008   |   |
| Income (Loss) from Operations:        |   |   |   |   |   |   |    |   |   |
|     North America |   | $      | 4,181  |   |   | $      | (205    | )      |   | $ | (12,646 | ) |
|     Asia          |   |   | 9,357  |   |   |   | (16,462 | )      |   |   | 1,202 |   |
|     Europe        |   |   | 1,622  |   |   |   | (684    | )      |   |   | 695 |   |
|                                  |   | $      | 15,160 |   |   | $      | (17,351 | )      |   | $ | (10,749 | ) |

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|                                                        |                                                                                                |                                                                                                                | Percentage of Net Sales                                                                   |                                                                                                                |
|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
|                                                        |                                                                                                |                                                                                                                | Years Ended December 31,                                                                  |                                                                                                                |
|                                                        |                                                                                                |                                                                                                                | 2010                                                                                      |                                                                                                                | 2009 |   | 2008 |   |
|                                                        |                                                                                                |                                                                                                                |                                                                                      |                                                                                                                |   |   |   |   |
| Net sales                                                   |                                                                                                |             100.0                                       |  %                                                                                   |             100.0                                       |  % |             100.0 | % |
| Cost of sales                                               |                                                                                                |               79.1                            |                                                                                      |               88.3                            |   |               84.0 |   |
| Selling, general and administrative expenses                |                                                                                                |               13.4                            |                                                                                      |               16.4                            |   |               14.0 |   |
| Impairment of assets                                        |                                                                                                |                    - |                                                                                      |                 7.0                 |   |                 5.7 |   |
| Litigation charge                                           |                                                                                                |                 2.7                 |                                                                                      |                    - |   |                    - |   |
| Restructuring charges                                       |                                                                                                |                    - |                                                                                      |                 0.2                 |   |                 0.4 |   |
| Gain on sale of property, plant and equipment               |                                                                                                |                 0.1                 |                                                                                      |                 2.6                 |   |                    - |   |
| Realized gain (loss/impairment charge) on investment        |                                                                                                |                    - |                                                                                      |                 3.9                 |   |               (4.0) |   |
| Interest income and other, net                              |                                                                                                |                 0.1                 |                                                                                      |                 0.3                 |   |                 1.0 |   |
| Earnings (loss) before provision (benefit) for income taxes |                 5.1 |                                                                                                                |               (5.3) |                                                                                                                |               (7.2) |   |
| Income tax provision (benefit)                              |                                                                                                |                 0.6                 |                                                                                      |               (0.8)                           |   |               (1.4) |   |
| Net earnings (loss)                                         |                                                                                                |                 4.5                 |                                                                                      |               (4.5)                           |   |               (5.8) |   |

|                                         |   |                                                                                                                   | Increase (Decrease) from |          |
|----------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|--------------------------|---------------|
|                                         |   |                                                                                                                   | Prior Period             |          |
|                                         |   | 2010 compared                                                                                                          |                     | 2009 compared |
|                                         |   | with 2009                                                                                                              |                     | with 2008     |
|                                         |   |                                                                                                                   |                     |          |   |   |   |   |
| Net sales                                    |   |                    65.5 |  %                  |          |   |               (29.3) |  % |
| Cost of sales                                |   |                    48.1 |                     |          |   |               (25.6) |   |
| Selling, general and administrative expenses |   |                    34.6 |                     |          |   |               (16.7) |   |
| Net loss/earnings                            |   |                  264.2            |                     |          |   |               (44.3) |   |

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|               |   | Year Ended   |    |
|--------------------|--------|--------------|---------|
|               |   | December 31, |    |
|               |   | 2010         |    |   | 2009 |   |   | 2008 |   |
| Magnetics          |   | $            | 127,664 |   |   |   | 43 | % |   | $ | 86,326 |   |   |   | 47 | % |   | $ | 118,552 |   |   |   | 46 | % |
| Interconnect       |   |         | 101,059 |   |   |   | 33 | % |   |   | 32,447 |   |   |   | 18 | % |   |   | 47,407 |   |   |   | 18 | % |
| Modules            |   |         | 61,092  |   |   |   | 20 | % |   |   | 54,323 |   |   |   | 30 | % |   |   | 77,285 |   |   |   | 30 | % |
| Circuit protection |   |         | 12,724  |   |   |   | 4 | % |   |   | 9,657 |   |   |   | 5 | % |   |   | 15,106 |   |   |   | 6 | % |
|               |   | $            | 302,539 |   |   |   | 100 | % |   | $ | 182,753 |   |   |   | 100 | % |   | $ | 258,350 |   |   |   | 100 | % |

|                                  | Year Ended   |
|---------------------------------------|--------------|
|                                  | December 31, |
|                                  | 2010         |   | 2009 |   | 2008 |
| Material                              | 44.7%        |   | 55.3% |   | 51.1% |
| Labor                                 | 13.9%        |   | 11.5% |   | 15.0% |
| Research and development              | 3.8%         |   | 4.3% |   | 2.9% |
| Other expenses                        | 16.7%        |   | 17.2% |   | 15.0% |
|    Total cost of sales | 79.1%        |   | 88.3% |   | 84.0% |

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|                                      |   | (Favorable) Unfavorable Variances in SG&A |   |
|-------------------------------------------|--------|-----------------------------------------------|--------|
|                                      |   | Year Ended                                    |   |   | Year Ended |   |
|                                      |   | December 31, 2010 vs. 2009                    |   |   | December 31, 2009 vs. 2008 |   |
|                                      |   | Consolidated                                  |   |   | Legacy-Bel Only |   |   | Cinch |   |   | Legacy-Bel Only (pre-Cinch) |   |
| Sales commissions                         |   | $                                             | 1,892  |   |   | $ | 1,060 |   |   | $ | 832 |   |   | $ | (1,952 | ) |
| Salaries and fringes                      |   |                                          | 2,755  |   |   |   | (809 | ) |   |   | 3,564 |   |   |   | (1,447 | ) |
| Incentive compensation                    |   |                                          | 2,528  |   |   |   | 2,263 |   |   |   | 265 |   |   |   | (215 | ) |
| Fraud-related costs                       |   |                                          | (594   | ) |   |   | (594 | ) |   |   | - |   |   |   | 472 |   |
| Acquisition-related costs                 |   |                                          | (205   | ) |   |   | (260 | ) |   |   | 55 |   |   |   | 605 |   |
| Travel expenses                           |   |                                          | 873    |   |   |   | 539 |   |   |   | 334 |   |   |   | (975 | ) |
| Office expenses                           |   |                                          | 1,642  |   |   |   | 100 |   |   |   | 1,542 |   |   |   | (1,086 | ) |
| Other legal and professional fees         |   |                                          | 716    |   |   |   | 475 |   |   |   | 241 |   |   |   | (236 | ) |
| Severance charges                         |   |                                          | (191   | ) |   |   | (372 | ) |   |   | 181 |   |   |   | 389 |   |
| Fair value of COLI investments            |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (SG&A portion only) |   |                                          | 160    |   |   |   | 160 |   |   |   | - |   |   |   | (545 | ) |
| Foreign exchange                          |   |                                          | 58     |   |   |   | (76 | ) |   |   | 134 |   |   |   | (522 | ) |
| Other                                     |   |                                          | 754    |   |   |   | (244 | ) |   |   | 998 |   |   |   | (526 | ) |
|                                      |   | $                                             | 10,388 |   |   | $ | 2,242 |   |   | $ | 8,146 |   |   | $ | (6,038 | ) |

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|                              |   | Payments due by period |   |
|-----------------------------------|--------|------------------------|--------|
| Contractual Obligations           |   | Total                  |   |   | Less than 1 year |   |   | 1-3years |   |   | 3-5years |   |   | More than5 years |   |
|                              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditure obligations   |   | $                      | 1,658  |   |   | $ | 1,658 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Operating leases                  |   |                   | 8,714  |   |   |   | 2,956 |   |   |   | 3,880 |   |   |   | 1,878 |   |   |   | - |   |
| Raw material purchase obligations |   |                   | 30,154 |   |   |   | 30,153 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |
|                              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                             |   | $                      | 40,526 |   |   | $ | 34,767 |   |   | $ | 3,881 |   |   | $ | 1,878 |   |   | $ | - |   |

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Item 7A.

Item 8.

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| BEL FUSE INC.                                                     |
|-------------------------------------------------------------------|
| INDEX                                                             |
|                                                              |   |   |   |
| Financial Statements                                              |   | Page |   |
|                                                              |   |   |   |
|                                                              |   |   |   |
| Report of Independent Registered Public Accounting Firm           |   | F-1 |   |
|                                                              |   |   |   |
| Consolidated Balance Sheets as of December 31, 2010 and 2009      |   | F-2 |   |
|                                                              |   |   |   |
| Consolidated Statements of Operations for Each of the Three       |   |   |   |
|   Years in the Period Ended December 31, 2010           |   | F-3 |   |
|                                                              |   |   |   |
| Consolidated Statements of Stockholders' Equity for Each of       |   |   |   |
|   the Three Years in the Period Ended December 31, 2010 |   | F-4 |   |
|                                                              |   |   |   |
| Consolidated Statements of Cash Flows for Each of the Three       |   |   |   |
|   Years in the Period Ended December 31, 2010           |   | F-5 |   |
|                                                              |   |   |   |
| Notes to Consolidated Financial Statements                        |   | F-7 |   |

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REPORT

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| BEL FUSE INC. AND SUBSIDIARIES                                                                     |   |
|----------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                        |   |
| (dollars in thousands, except share and per share data)                                            |   |
|                                                                                               |   |   |   |   |   |   |
|                                                                                               |   | December 31, |   |   | December 31, |   |
|                                                                                               |   | 2010 |   |   | 2009 |   |
| ASSETS                                                                                             |   |
| Current Assets:                                                                                    |   |   |   |   |   |   |
| Cash and cash equivalents                                                                          |   | $ | 83,829 |   |   | $ | 124,231 |   |
| Marketable securities                                                                              |   |   | 1,706 |   |   |   | 2 |   |
| Accounts receivable - less allowance for doubtful accounts                                         |   |   |   |   |   |   |   |   |
|    of $653 and $596 at December 31, 2010 and 2009, respectively                     |   |   | 53,312 |   |   |   | 34,783 |   |
| Inventories                                                                                        |   |   | 56,970 |   |   |   | 31,791 |   |
| Prepaid expenses and other current assets                                                          |   |   | 2,354 |   |   |   | 953 |   |
| Refundable income taxes                                                                            |   |   | 4,370 |   |   |   | 3,255 |   |
| Deferred income taxes                                                                              |   |   | 1,023 |   |   |   | 815 |   |
|     Total Current Assets                                                       |   |   | 203,564 |   |   |   | 195,830 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Property, plant and equipment - net                                                                |   |   | 44,793 |   |   |   | 35,943 |   |
| Restricted cash                                                                                    |   |   | 155 |   |   |   | 250 |   |
| Deferred income taxes                                                                              |   |   | 3,201 |   |   |   | 4,516 |   |
| Intangible assets - net                                                                            |   |   | 11,291 |   |   |   | 551 |   |
| Goodwill                                                                                           |   |   | 4,264 |   |   |   | 1,957 |   |
| Other assets                                                                                       |   |   | 9,904 |   |   |   | 6,899 |   |
|     TOTAL ASSETS                                                               |   | $ | 277,172 |   |   | $ | 245,946 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                               |   |
| Current Liabilities:                                                                               |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                   |   | $ | 21,180 |   |   | $ | 17,194 |   |
| Accrued expenses                                                                                   |   |   | 22,545 |   |   |   | 7,991 |   |
| Accrued restructuring costs                                                                        |   |   | 160 |   |   |   | 156 |   |
| Income taxes payable                                                                               |   |   | 1,584 |   |   |   | 1,863 |   |
| Dividends payable                                                                                  |   |   | 799 |   |   |   | 793 |   |
|     Total Current Liabilities                                                  |   |   | 46,268 |   |   |   | 27,997 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Long-term Liabilities:                                                                             |   |   |   |   |   |   |   |   |
| Accrued restructuring costs                                                                        |   |   | 347 |   |   |   | 508 |   |
| Liability for uncertain tax positions                                                              |   |   | 2,874 |   |   |   | 2,887 |   |
| Minimum pension obligation and unfunded pension liability                                          |   |   | 7,350 |   |   |   | 5,622 |   |
|     Total Long-term Liabilities                                                |   |   | 10,571 |   |   |   | 9,017 |   |
|     Total Liabilities                                                          |   |   | 56,839 |   |   |   | 37,014 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Commitments and Contingencies                                                                      |   |   |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| Stockholders' Equity:                                                                              |   |   |   |   |   |   |   |   |
| Preferred stock, no par value, 1,000,000 shares authorized; none issued                            |   |   | - |   |   |   | - |   |
| Class A common stock, par value $.10 per share, 10,000,000 shares                                  |   |   |   |   |   |   |   |   |
|     authorized; 2,174,912 shares outstanding at each date (net of              |   |   |   |   |   |   |   |   |
|     1,072,769 treasury shares)                                                 |   |   | 217 |   |   |   | 217 |   |
| Class B common stock, par value $.10 per share, 30,000,000 shares                                  |   |   |   |   |   |   |   |   |
|      authorized; 9,527,343 and 9,464,343 shares outstanding, respectively |   |   |   |   |   |   |   |   |
|      (net of 3,218,307 treasury shares)                                   |   |   | 953 |   |   |   | 946 |   |
| Additional paid-in capital                                                                         |   |   | 23,725 |   |   |   | 21,663 |   |
| Retained earnings                                                                                  |   |   | 195,477 |   |   |   | 185,014 |   |
| Accumulated other comprehensive (loss) income                                                      |   |   | (39 | ) |   |   | 1,092 |   |
|     Total Stockholders' Equity                                                 |   |   | 220,333 |   |   |   | 208,932 |   |
|     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                 |   | $ | 277,172 |   |   | $ | 245,946 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.                                                    |   |

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| BEL FUSE INC. AND SUBSIDIARIES                              |   |
|-------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                       |   |
| (dollars in thousands, except per share data)               |   |
|                                                        |   |   |   |   |   |   |   |   |   |
|                                                        |   | Years Ended December 31, |   |
|                                                        |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                        |   |   |   |   |   |   |   |   |   |
| Net Sales                                                   |   | $ | 302,539 |   |   | $ | 182,753 |   |   | $ | 258,350 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                               |   |   | 239,185 |   |   |   | 161,454 |   |   |   | 217,079 |   |
| Selling, general and administrative                         |   |   | 40,443 |   |   |   | 30,055 |   |   |   | 36,093 |   |
| Impairment of assets                                        |   |   | - |   |   |   | 12,875 |   |   |   | 14,805 |   |
| Litigation charge                                           |   |   | 8,103 |   |   |   | - |   |   |   | - |   |
| Restructuring charges                                       |   |   | - |   |   |   | 413 |   |   |   | 1,122 |   |
| Gain on sale of property, plant and equipment               |   |   | (352 | ) |   |   | (4,693 | ) |   |   | - |   |
|                                                        |   |   | 287,379 |   |   |   | 200,104 |   |   |   | 269,099 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                               |   |   | 15,160 |   |   |   | (17,351 | ) |   |   | (10,749 | ) |
| Gain (loss/impairment charge) on investment                 |   |   | - |   |   |   | 7,129 |   |   |   | (10,358 | ) |
| Interest income and other, net                              |   |   | 420 |   |   |   | 527 |   |   |   | 2,454 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) before provision (benefit) for income taxes |   |   | 15,580 |   |   |   | (9,695 | ) |   |   | (18,653 | ) |
| Income tax provision (benefit)                              |   |   | 1,931 |   |   |   | (1,385 | ) |   |   | (3,724 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                                         |   | $ | 13,649 |   |   | $ | (8,310 | ) |   | $ | (14,929 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A common share - basic and diluted                    |   | $ | 1.10 |   |   | $ | (0.71 | ) |   | $ | (1.25 | ) |
| Class B common share - basic and diluted                    |   | $ | 1.18 |   |   | $ | (0.72 | ) |   | $ | (1.28 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average shares outstanding:                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A common share - basic and diluted                    |   |   | 2,174,912 |   |   |   | 2,175,322 |   |   |   | 2,391,088 |   |
| Class B common share - basic and diluted                    |   |   | 9,504,261 |   |   |   | 9,363,199 |   |   |   | 9,350,747 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends paid per share:                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A common share                                        |   | $ | 0.24 |   |   | $ | 0.24 |   |   | $ | 0.24 |   |
| Class B common share                                        |   | $ | 0.28 |   |   | $ | 0.28 |   |   | $ | 0.28 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.             |   |

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| BEL FUSE INC. AND SUBSIDIARIES                                         |   |
|------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                        |   |
| (dollars in thousands)                                                 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   | Comprehensive |   |   |   |   |   | Other |   |   | Class A |   |   | Class B |   |   | Additional |   |
|                                                                   |   |   |   |   | (Loss) |   |   | Retained |   |   | Comprehensive |   |   | Common |   |   | Common |   |   | Paid-In |   |
|                                                                   |   | Total |   |   | Income |   |   | Earnings |   |   | Income (Loss) |   |   | Stock |   |   | Stock |   |   | Capital |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2008                                               |   | $ | 244,527 |   |   |   |   |   | $ | 214,580 |   |   | $ | (344 | ) |   | $ | 255 |   |   | $ | 929 |   |   | $ | 29,107 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of stock options                                              |   |   | 312 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 3 |   |   | $ | 309 |   |
| Tax benefits arising from the disposition                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    of non-qualified incentive stock options             |   |   | 39 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 39 |   |
| Cash dividends declared on Class A common stock                        |   |   | (565 | ) |   |   |   |   |   | (565 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared on Class B common stock                        |   |   | (2,619 | ) |   |   |   |   |   | (2,619 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of restricted common stock                                    |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6 |   |   |   | (6 | ) |
| Termination of restricted common stock                                 |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1 | ) |   |   | 1 |   |
| Repurchase/retirement of Class A common stock                          |   |   | (11,002 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   | (37 | ) |   |   |   |   |   |   | (10,965 | ) |
| Currency translation adjustment                                        |   |   | (355 | ) |   | $ | (355 | ) |   |   |   |   |   |   | (355 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding losses on marketable securities                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    arising during the year, net of taxes of ($2,591)    |   |   | (4,230 | ) |   |   | (4,230 | ) |   |   |   |   |   |   | (4,230 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment of unrealized holding                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   losses for impairment charge included in net loss,         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   net of taxes of $3,402                                     |   |   | 5,551 |   |   |   | 5,551 |   |   |   |   |   |   |   | 5,551 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation expense                                       |   |   | 1,478 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,478 |   |
| Change in unfunded SERP liability, net of taxes of ($123)              |   |   | (434 | ) |   |   | (434 | ) |   |   |   |   |   |   | (434 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                               |   |   | (14,929 | ) |   |   | (14,929 | ) |   |   | (14,929 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Comprehensive loss                 |   |   |   |   |   | $ | (14,397 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                             |   | $ | 217,773 |   |   |   |   |   |   | $ | 196,467 |   |   | $ | 188 |   |   | $ | 218 |   |   | $ | 937 |   |   | $ | 19,963 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared on Class A common stock                        |   |   | (521 | ) |   |   |   |   |   |   | (521 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared on Class B common stock                        |   |   | (2,622 | ) |   |   |   |   |   |   | (2,622 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of restricted common stock                                    |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 14 |   |   |   | (14 | ) |
| Termination of restricted common stock                                 |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2 | ) |   |   | 2 |   |
| Repurchase/retirement of Class A common stock                          |   |   | (92 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1 | ) |   |   |   |   |   |   | (91 | ) |
| Currency translation adjustment                                        |   |   | 43 |   |   | $ | 43 |   |   |   |   |   |   |   | 43 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on marketable securities                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    arising during the year, net of taxes of $2,648      |   |   | 4,321 |   |   |   | 4,321 |   |   |   |   |   |   |   | 4,321 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment of unrealized holding                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    gains included in net loss, net of taxes of ($2,629) |   |   | (4,289 | ) |   |   | (4,289 | ) |   |   |   |   |   |   | (4,289 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Reduction in APIC pool associated with tax                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    deficiencies related to restricted stock awards      |   |   | (287 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (287 | ) |
| Unauthorized issuance of common stock                                  |   |   | 812 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 812 |   |
| Return of unauthorized shares of common stock                          |   |   | (456 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3 | ) |   |   | (453 | ) |
| Stock-based compensation expense                                       |   |   | 1,731 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,731 |   |
| Change in unfunded SERP liability, net of taxes of $264                |   |   | 829 |   |   |   | 829 |   |   |   |   |   |   |   | 829 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                               |   |   | (8,310 | ) |   |   | (8,310 | ) |   |   | (8,310 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Comprehensive loss                 |   |   |   |   |   | $ | (7,406 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                             |   | $ | 208,932 |   |   |   |   |   |   | $ | 185,014 |   |   | $ | 1,092 |   |   | $ | 217 |   |   | $ | 946 |   |   | $ | 21,663 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared on Class A common stock                        |   |   | (522 | ) |   |   |   |   |   |   | (522 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared on Class B common stock                        |   |   | (2,664 | ) |   |   |   |   |   |   | (2,664 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of restricted common stock                                    |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7 |   |   |   | (7 | ) |
| Currency translation adjustment                                        |   |   | (907 | ) |   | $ | (907 | ) |   |   |   |   |   |   | (907 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains on marketable securities                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   arising during the year, net of taxes of $280              |   |   | 457 |   |   |   | 457 |   |   |   |   |   |   |   | 457 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reduction in APIC pool associated with tax                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    deficiencies related to restricted stock awards      |   |   | (131 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (131 | ) |
| Stock-based compensation expense                                       |   |   | 2,200 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,200 |   |
| Change in unfunded SERP liability, net of taxes of ($294)              |   |   | (681 | ) |   |   | (681 | ) |   |   |   |   |   |   | (681 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                             |   |   | 13,649 |   |   |   | 13,649 |   |   |   | 13,649 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Comprehensive income               |   |   |   |   |   | $ | 12,518 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                             |   | $ | 220,333 |   |   |   |   |   |   | $ | 195,477 |   |   | $ | (39 | ) |   | $ | 217 |   |   | $ | 953 |   |   | $ | 23,725 |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.                        |   |

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| BEL FUSE INC. AND SUBSIDIARIES                                                                |   |
|-----------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                         |   |
| (dollars in thousands)                                                                        |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                                          |   | Year Ended December 31, |   |
|                                                                                          |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities:                                                         |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                                                                           |   | $ | 13,649 |   |   | $ | (8,310 | ) |   | $ | (14,929 | ) |
| Adjustments to reconcile net earnings (loss) to net cash                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|    provided by operating activities:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                 |   |   | 8,836 |   |   |   | 6,778 |   |   |   | 7,443 |   |
| Stock-based compensation                                                                      |   |   | 2,200 |   |   |   | 1,731 |   |   |   | 1,478 |   |
| Excess tax benefits from share-based payment arrangements                                     |   |   | - |   |   |   | - |   |   |   | (39 | ) |
| Gain on sale of property, plant and equipment                                                 |   |   | (352 | ) |   |   | (4,693 | ) |   |   | - |   |
| Realized (gain) loss/impairment charge on investment                                          |   |   | - |   |   |   | (7,129 | ) |   |   | 10,358 |   |
| Impairment of assets                                                                          |   |   | - |   |   |   | 12,875 |   |   |   | 14,805 |   |
| Other, net                                                                                    |   |   | 715 |   |   |   | 807 |   |   |   | 1,565 |   |
| Deferred income taxes                                                                         |   |   | 725 |   |   |   | 4,004 |   |   |   | (3,616 | ) |
| Changes in operating assets and liabilities (see below)                                       |   |   | (18,136 | ) |   |   | 23,095 |   |   |   | (6,776 | ) |
|       Net Cash Provided by Operating Activities                 |   |   | 7,637 |   |   |   | 29,158 |   |   |   | 10,289 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of property, plant and equipment                                                     |   |   | (2,427 | ) |   |   | (2,357 | ) |   |   | (6,887 | ) |
| Purchase of intangible asset                                                                  |   |   | - |   |   |   | (99 | ) |   |   | (300 | ) |
| Purchase of marketable securities                                                             |   |   | (6,190 | ) |   |   | (3,545 | ) |   |   | (18,970 | ) |
| Payment for acquisition                                                                       |   |   | (40,424 | ) |   |   | (454 | ) |   |   | - |   |
| Cash transferred from (to) restricted cash                                                    |   |   | 250 |   |   |   | (250 | ) |   |   | - |   |
| Redesignation of marketable security to cash equivalent                                       |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Proceeds from sale of marketable securities                                                   |   |   | - |   |   |   | 20,592 |   |   |   | - |   |
| Proceeds from sale of property, plant and equipment                                           |   |   | 606 |   |   |   | 2,639 |   |   |   | 2,272 |   |
| Proceeds from cash surrender value of company-owned                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|     life insurance, net of purchases                                      |   |   | 3,428 |   |   |   | 1,518 |   |   |   | - |   |
| Redemption of investment                                                                      |   |   | - |   |   |   | 5,286 |   |   |   | 16,600 |   |
|        Net Cash (Used In) Provided by Investing Activities |   |   | (44,757 | ) |   |   | 23,330 |   |   |   | (5,285 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from exercise of stock options                                                       |   |   | - |   |   |   | - |   |   |   | 312 |   |
| Dividends paid to common shareholders                                                         |   |   | (3,181 | ) |   |   | (3,137 | ) |   |   | (3,192 | ) |
| Purchase and retirement of Class A common stock                                               |   |   | - |   |   |   | (92 | ) |   |   | (11,002 | ) |
| Excess tax benefits from share-based payment arrangements                                     |   |   | - |   |   |   | - |   |   |   | 39 |   |
|       Net Cash Used In Financing Activities                     |   |   | (3,181 | ) |   |   | (3,229 | ) |   |   | (13,843 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                                                       |   |   | (101 | ) |   |   | 17 |   |   |   | (81 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (Decrease) Increase in Cash and Cash Equivalents                                          |   |   | (40,402 | ) |   |   | 49,276 |   |   |   | (8,920 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents - beginning of year                                                 |   |   | 124,231 |   |   |   | 74,955 |   |   |   | 83,875 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents - end of year                                                       |   | $ | 83,829 |   |   | $ | 124,231 |   |   | $ | 74,955 |   |
|                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.                                               |   |

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| BEL FUSE INC. AND SUBSIDIARIES                                                |   |
|-------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)                             |   |
| (dollars in thousands)                                                        |   |
|                                                                          |   |   |   |   |   |   |   |   |   |
|                                                                          |   | Year Ended December 31, |   |
|                                                                          |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |
| Changes in operating assets and liabilities consist of:                       |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |
| (Increase) decrease in accounts receivable                                    |   | $ | (12,164 | ) |   | $ | 11,297 |   |   | $ | 6,010 |   |
| (Increase) decrease in inventories                                            |   |   | (17,648 | ) |   |   | 14,763 |   |   |   | (7,585 | ) |
| (Increase) decrease in prepaid expenses and other                             |   |   |   |   |   |   |   |   |   |   |   |   |
|    current assets                                              |   |   | (833 | ) |   |   | (92 | ) |   |   | 579 |   |
| (Increase) decrease in other assets                                           |   |   | (13 | ) |   |   | 76 |   |   |   | (20 | ) |
| Increase (decrease) in accounts payable                                       |   |   | 1,716 |   |   |   | 2,905 |   |   |   | (1,842 | ) |
| Decrease in income taxes payable                                              |   |   | (1,157 | ) |   |   | (3,510 | ) |   |   | (2,743 | ) |
| (Decrease) increase in accrued restructuring costs                            |   |   | (157 | ) |   |   | (297 | ) |   |   | 961 |   |
| Increase (decrease) in accrued expenses                                       |   |   | 12,120 |   |   |   | (2,047 | ) |   |   | (2,136 | ) |
|                                                                          |   | $ | (18,136 | ) |   | $ | 23,095 |   |   | $ | (6,776 | ) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplementary information:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for:                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes, net of refunds received                                         |   | $ | 2,172 |   |   | $ | (1,909 | ) |   | $ | 2,606 |   |
| Interest                                                                      |   | $ | 15 |   |   | $ | 2 |   |   | $ | 4 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Details of acquisition (see Note 3):                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of identifiable net assets acquired                                |   | $ | 38,132 |   |   | $ | 25 |   |   | $ | - |   |
| Goodwill                                                                      |   |   | 2,349 |   |   |   | 468 |   |   |   | - |   |
|      Fair value of net assets acquired               |   | $ | 40,481 |   |   | $ | 493 |   |   |   | - |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of consideration transferred                                       |   | $ | 40,481 |   |   | $ | 493 |   |   |   | - |   |
| Less: Cash acquired in acquisition                                            |   |   | (57 | ) |   |   | - |   |   |   | - |   |
| Amount held back on acquisition payment                                       |   |   | - |   |   |   | (39 | ) |   |   | - |   |
|      Cash paid for acquisition, net of cash acquired |   | $ | 40,424 |   |   | $ | 454 |   |   | $ | - |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements.                               |   |

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BEL

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|                                                                |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|---------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Numerator:                                                          |   |   |      |   |   |   |      |   |   |
| Net earnings (loss)                                                 |   | $      | 13,649    |   |   | $      | (8,310    | )      |   | $ | (14,929 | ) |
| Less Dividends declared:                                            |   |   |      |   |   |   |      |   |   |   |   |   |
|      Class A                               |   |   | 522       |   |   |   | 521       |   |   |   | 565 |   |
|      Class B                               |   |   | 2,664     |   |   |   | 2,622     |   |   |   | 2,619 |   |
| Undistributed earnings (loss)                                       |   | $      | 10,463    |   |   | $      | (11,453   | )      |   | $ | (18,113 | ) |
|                                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Undistributed earnings (loss) allocation - basic and diluted:       |   |   |      |   |   |   |      |   |   |
|      Class A undistributed earnings (loss) |   | $      | 1,872     |   |   | $      | (2,075    | )      |   | $ | (3,547 | ) |
|      Class B undistributed earnings (loss) |   |   | 8,591     |   |   |   | (9,378    | )      |   |   | (14,566 | ) |
|      Total undistributed earnings (loss)   |   | $      | 10,463    |   |   | $      | (11,453   | )      |   | $ | (18,113 | ) |
|                                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Net earnings (loss) allocation - basic and diluted:                 |   |   |      |   |   |   |      |   |   |   |   |   |
|      Class A undistributed earnings (loss) |   | $      | 2,394     |   |   | $      | (1,554    | )      |   | $ | (2,982 | ) |
|      Class B undistributed earnings (loss) |   |   | 11,255    |   |   |   | (6,756    | )      |   |   | (11,947 | ) |
|      Net earnings (loss)                   |   | $      | 13,649    |   |   | $      | (8,310    | )      |   | $ | (14,929 | ) |
|                                                                |   |   |      |   |   |   |      |   |   |   |   |   |
|                                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Denominator:                                                        |   |   |      |   |   |   |      |   |   |   |   |   |
| Weighted average shares outstanding:                                |   |   |      |   |   |   |      |   |   |   |   |   |
|      Class A - basic and diluted           |   |   | 2,174,912 |   |   |   | 2,175,322 |   |   |   | 2,391,088 |   |
|      Class B - basic and diluted           |   |   | 9,504,261 |   |   |   | 9,363,199 |   |   |   | 9,350,747 |   |
|                                                                |   |   |      |   |   |   |      |   |   |   |   |   |
| Earnings (loss) per share:                                          |   |   |      |   |   |   |      |   |   |   |   |   |
| Class A - basic and diluted                                         |   | $      | 1.10      |   |   | $      | (0.71     | )      |   | $ | (1.25 | ) |
| Class B - basic and diluted                                         |   | $      | 1.18      |   |   | $      | (0.72     | )      |   | $ | (1.28 | ) |

----

Return to Index

| 2.   | ACQUISITION OF CINCH |
|----------------|----------------------|

----

Return to Index

|                                                                  |   |             |   |   |  Measurement |   |    |                   |   |
|-----------------------------------------------------------------------|--------|------------------|--------|--------|-------------------|--------|---------|------------------------|--------|
|                                                                  |   |             |   |   |  Period      |   |    |  January 29, 2010 |   |
|                                                                  |   | January 29, 2010 |   |   | Adjustments       |   |    | (As adjusted)          |   |
| Cash                                                                  |   | $                | 57     |   |              | $      | -       |                   |   | $ | 57 |   |
| Accounts receivable                                                   |   |             | 6,910  |   |              |   | (263    | )                      |   |   | 6,647 |   |
| Inventories                                                           |   |             | 7,548  |   |              |   | 169     |                   |   |   | 7,717 |   |
| Other current assets                                                  |   |             | 803    |   |              |   | 399     |                   |   |   | 1,202 |   |
| Property, plant and equipment                                         |   |             | 7,822  |   |              |   | 6,996   |                   |   |   | 14,818 |   |
| Intangible assets                                                     |   |             | 2,528  |   |              |   | 8,887   |                   |   |   | 11,415 |   |
| Other assets                                                          |   |             | 1,715  |   |              |   | (57     | )                      |   |   | 1,658 |   |
|      Total identifiable assets               |   |             | 27,383 |   |              |   | 16,131  |                   |   |   | 43,514 |   |
|                                                                  |   |             |   |   |              |   |    |                   |   |   |   |   |
| Accounts payable                                                      |   |             | (2,320 | )      |              |   | -       |                   |   |   | (2,320 | ) |
| Accrued expenses and other current liabilities                        |   |             | (2,932 | )      |              |   | 317     |                   |   |   | (2,615 | ) |
| Noncurrent deferred tax liability                                     |   |             | -      |   |              |   | (447    | )                      |   |   | (447 | ) |
|      Total liabilities assumed               |   |             | (5,252 | )      |              |   | (130    | )                      |   |   | (5,382 | ) |
|      Net identifiable assets acquired        |   |             | 22,131 |   |              |   | 16,001  |                   |   |   | 38,132 |   |
|      Goodwill                                |   |             | 18,371 |   |              |   | (16,022 | )                      |   |   | 2,349 |   |
|      Net assets acquired                     |   | $                | 40,502 |   |              | $      | (21     | )                      |   | $ | 40,481 |   |
|                                                                  |   |             |   |   |              |   |    |                   |   |   |   |   |
|                                                                  |   |             |   |   |              |   |    |                   |   |   |   |   |
| Cash paid                                                             |   | $                | 39,755 |   |              |   | (79     | )                      |   | $ | 39,676 |   |
| Assumption of change-in-control payments                              |   |             | 747    |   |              |   | 58      |                   |   |   | 805 |   |
|      Fair value of consideration transferred |   | $                | 40,502 |   |              | $      | (21     | )                      |   | $ | 40,481 |   |

|                                                                 |   | Weighted-Average Estimated Useful Life |   | Acquisition-Date Fair Value |   |
|----------------------------------------------------------------------|--------|----------------------------------------|--------|-----------------------------|--------|
| Land                                                                 |   | Indefinite                             |   | $                           | 166    |   |
| Buildings and improvements                                           |   | 11.7 years                             |   |                        | 2,464  |   |
| Machinery and equipment                                              |   | 5.0 years                              |   |                        | 11,539 |   |
| Construction in progress                                             |   |                                   | N/A    |                        |   | 649 |   |
|     Total property, plant and equipment acquired |   |                                   |   |                        | $      | 14,818 |   |

----

Return to Index

|                                                                  | Weighted-Average Life |   | Acquisition-Date Fair Value |   |
|-----------------------------------------------------------------------|-----------------------|--------|-----------------------------|--------|
| Trademarks                                                            | Indefinite            |   | $                           | 7,000  |   |
| Customer relationships                                                | 16.5 years            |   |                        | 2,600  |   |
| Technology                                                            | 9.8 years             |   |                        | 1,700  |   |
| Licensing agreements                                                  | 10.0 years            |   |                        | 75     |   |
| Non-compete agreements                                                | 2.0 years             |   |                        | 40     |   |
|     Total identifiable intangible assets acquired |                  |   | $                           | 11,415 |   |

|                                                         |   | Year Ended December 31, |    |
|--------------------------------------------------------------|--------|-------------------------|---------|
|                                                         |   | 2010                    |    |   | 2009 |   |
|                                                         |   |                    |    |   |   |   |
| Revenue                                                      |   | $                       | 306,226 |   |   | $ | 237,723 |   |
| Net earnings (loss)                                          |   |                    | 14,540  |   |   |   | (7,500 | ) |
| Earnings (loss) per Class A common share - basic and diluted |   |                    | 1.17    |   |   |   | (0.65 | ) |
| Earnings (loss) per Class B common share - basic and diluted |   |                    | 1.26    |   |   |   | (0.65 | ) |

| 3.   | GOODWILL AND OTHER INTANGIBLE ASSETS |
|----------------|--------------------------------------|

----

Return to Index

|                                       |   | Total  |    |   | Asia   |   |    | North America |   |   | Europe |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|---------------|--------|--------|--------|--------|
|                                       |   |   |    |   |   |   |    |          |   |   |   |   |
| Balance, January 1, 2009                   |   | $      | 14,334  |   |   | $      | 12,407  |          |   | $      | -      |   |   | $ | 1,927 |   |
|                                       |   |   |    |   |   |   |    |          |   |   |   |   |   |   |   |   |
| Goodwill allocation related to acquisition |   |   | 468     |   |   |   | 468     |          |   |   |   |   |   |   |   |   |
| Impairment charge                          |   |   | (12,875 | )      |   |   | (12,875 | )             |   |   | -      |   |   |   | - |   |
| Foreign currency translation               |   |   | 30      |   |   |   | -       |          |   |   | -      |   |   |   | 30 |   |
|                                       |   |   |    |   |   |   |    |          |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                 |   |   | 1,957   |   |   |   | -       |          |   |   | -      |   |   |   | 1,957 |   |
|                                       |   |   |    |   |   |   |    |          |   |   |   |   |   |   |   |   |
| Goodwill allocation related to acquisition |   |   | 2,349   |   |   |   | -       |          |   |   | 1,227  |   |   |   | 1,122 |   |
| Impairment charge                          |   |   | -       |   |   |   | -       |          |   |   | -      |   |   |   | - |   |
| Foreign currency translation               |   |   | (42     | )      |   |   | -       |          |   |   | -      |   |   |   | (42 | ) |
|                                       |   |   |    |   |   |   |    |          |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                 |   | $      | 4,264   |   |   | $      | -       |          |   | $      | 1,227  |   |   | $ | 3,037 |   |

|                                |   | Total  |    |   | Asia   |   |    | North America |   |   | Europe  |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|---------|---------------|--------|--------|---------|--------|
|                                |   |   |    |   |   |   |    |          |   |   |    |   |
| As of December 31, 2009:            |   |   |    |   |   |   |    |          |   |   |    |   |
| Goodwill balance, gross             |   | $      | 28,898  |   |   | $      | 12,875  |          |   | $      | 14,066  |   |   | $ | 1,957 |   |
| Accumulated impairment charges      |   |   | (26,941 | )      |   |   | (12,875 | )             |   |   | (14,066 | )      |   |   | - |   |
|                                |   |   |    |   |   |   |    |          |   |   |    |   |   |   |   |   |
| Goodwill, net of impairment charges |   | $      | 1,957   |   |   | $      | -       |          |   | $      | -       |   |   | $ | 1,957 |   |
|                                |   |   |    |   |   |   |    |          |   |   |    |   |   |   |   |   |
| As of December 31, 2010:            |   |   |    |   |   |   |    |          |   |   |    |   |   |   |   |   |
| Goodwill balance, gross             |   | $      | 31,205  |   |   | $      | 12,875  |          |   | $      | 15,293  |   |   | $ | 3,037 |   |
| Accumulated impairment charges      |   |   | (26,941 | )      |   |   | (12,875 | )             |   |   | (14,066 | )      |   |   | - |   |
|                                |   |   |    |   |   |   |    |          |   |   |    |   |   |   |   |   |
| Goodwill, net of impairment charges |   | $      | 4,264   |   |   | $      | -       |          |   | $      | 1,227   |   |   | $ | 3,037 |   |

----

Return to Index

|                            |   | December 31, 2010 |   |   | December 31, 2009 |   |
|---------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                            |   | Gross Carrying    |   |   | Accumulated       |   |   | Net Carrying |   |   | Gross Carrying |   |   | Accumulated |   |   | Net Carrying |   |
|                            |   | Amount            |   |   | Amortization      |   |   | Amount |   |   | Amount |   |   | Amortization |   |   | Amount |   |
|                            |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Patents and product information |   | $                 | 2,724  |   |              | $      | 795 |   |   | $ | 1,929 |   |   | $ | 1,231 |   |   | $ | 764 |   |   | $ | 467 |   |
| Customer relationships          |   |              | 4,370  |   |              |   | 1,974 |   |   |   | 2,396 |   |   |   | 1,830 |   |   |   | 1,746 |   |   |   | 84 |   |
| Non-compete agreements          |   |              | 40     |   |              |   | 18 |   |   |   | 22 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Trademarks                      |   |              | 6,944  |   |              |   | - |   |   |   | 6,944 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                            |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   | $                 | 14,078 |   |              | $      | 2,787 |   |   | $ | 11,291 |   |   | $ | 3,061 |   |   | $ | 2,510 |   |   | $ | 551 |   |

| Year Ending  |   | Amortization |   |
|--------------|--------|--------------|--------|
| December 31, |   | Expense      |   |
|         |   |         |   |
| 2011         |   | $            | 430    |   |
| 2012         |   |         | 392    |   |
| 2013         |   |         | 390    |   |
| 2014         |   |         | 390    |   |
| 2015         |   |         | 390    |   |

| 4.   |  FAIR VALUE MEASUREMENTS |
|----------------|-------------------------------|

----

Return to Index

|                                              |   |   |   |   | Assets at Fair Value Using                                          |   |
|---------------------------------------------------|--------|--------|--------|--------|---------------------------------------------------------------------|--------|
|                                              |   | Total  |   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| As of December 31, 2010                           |   |   |   |   |                                                                |   |   |   |   |   |   |   |
| Available-for-sale securities:                    |   |   |   |   |                                                                |   |   |   |   |   |   |   |
|    Investments held in Rabbi Trust |   | $      | 5,924  |   |                                                                | $      | 5,924 |   |   | $ | - |   |   | $ | - |   |
|    Marketable securities           |   |   | 1,706  |   |                                                                |   | 1,706 |   |   |   | - |   |   |   | - |   |
|                                              |   |   |   |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
|    Total                           |   | $      | 7,630  |   |                                                                | $      | 7,630 |   |   | $ | - |   |   | $ | - |   |
|                                              |   |   |   |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009                           |   |   |   |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities:                    |   |   |   |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
|    Investments held in Rabbi Trust |   | $      | 3,656  |   |                                                                | $      | 3,656 |   |   | $ | - |   |   | $ | - |   |
|    Marketable securities           |   |   | 2      |   |                                                                |   | 2 |   |   |   | - |   |   |   | - |   |
|                                              |   |   |   |   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
|    Total                           |   | $      | 3,658  |   |                                                                | $      | 3,658 |   |   | $ | - |   |   | $ | - |   |

| 5.   | OTHER ASSETS |
|----------------|--------------|

----

Return to Index

| 6.   | INVENTORIES |
|----------------|-------------|

|             |   | December 31, |   |
|------------------|--------|--------------|--------|
|             |   | 2010         |   |   | 2009 |   |
| Raw materials    |   | $            | 35,157 |   |   | $ | 22,431 |   |
| Work in progress |   |         | 5,930  |   |   |   | 1,478 |   |
| Finished goods   |   |         | 15,883 |   |   |   | 7,882 |   |
|             |   | $            | 56,970 |   |   | $ | 31,791 |   |

| 7.   | PROPERTY, PLANT AND EQUIPMENT |
|----------------|-------------------------------|

|                       |   | December 31, |    |
|----------------------------|--------|--------------|---------|
|                       |   | 2010         |    |   | 2009 |   |
| Land                       |   | $            | 3,400   |   |   | $ | 3,237 |   |
| Buildings and improvements |   |         | 24,803  |   |   |   | 21,454 |   |
| Machinery and equipment    |   |         | 67,961  |   |   |   | 55,336 |   |
| Construction in progress   |   |         | 1,332   |   |   |   | 1,538 |   |
|                       |   |         | 97,496  |   |   |   | 81,565 |   |
| Accumulated depreciation   |   |         | (52,703 | ) |   |   | (45,622 | ) |
|                       |   |         |    |   |   |   |   |   |
|                       |   | $            | 44,793  |   |   | $ | 35,943 |   |

----

Return to Index

|                                    |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Unrecognized tax benefit - January 1    |   | $      | 4,722  |   |   | $      | 7,345  |   |   | $ | 9,191 |   |
| Additions based on tax positions        |   |   |   |   |   |   |   |   |   |   |   |   |
|   related to the current year |   |   | 948    |   |   |   | 1,277  |   |   |   | 415 |   |
| Expiration of statutes of limitations   |   |   | (1,835 | )      |   |   | (3,900 | )      |   |   | (2,261 | ) |
| Unrecognized tax benefit - December 31  |   | $      | 3,835  |   |   | $      | 4,722  |   |   | $ | 7,345 |   |

|                            |   | Years Ended December 31, |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Current:                        |   |                     |   |   |   |   |   |   |   |
|     Federal |   | $                        | 221    |   |   | $ | (5,383 | ) |   | $ | (426 | ) |
|     Foreign |   |                     | 804    |   |   |   | 12 |   |   |   | (107 | ) |
|     State   |   |                     | 182    |   |   |   | (18 | ) |   |   | 425 |   |
|                            |   |                     | 1,207  |   |   |   | (5,389 | ) |   |   | (108 | ) |
| Deferred:                       |   |                     |   |   |   |   |   |   |   |   |   |   |
|     Federal |   |                     | (133   | ) |   |   | 4,229 |   |   |   | (3,240 | ) |
|     State   |   |                     | 189    |   |   |   | 302 |   |   |   | (381 | ) |
|     Foreign |   |                     | 668    |   |   |   | (527 | ) |   |   | 5 |   |
|                            |   |                     | 724    |   |   |   | 4,004 |   |   |   | (3,616 | ) |
|                            |   |                     |   |   |   |   |   |   |   |   |   |   |
|                            |   | $                        | 1,931  |   |   | $ | (1,385 | ) |   | $ | (3,724 | ) |

----

Return to Index

|                                                    |   | Years Ended December 31, |   |
|---------------------------------------------------------|--------|--------------------------|--------|
|                                                    |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                    |   |  $                  |   |   |   | %  |   |   |  $ |   |   |   | %  |   |   |  $ |   |   |   | %  |   |
| Tax provision (benefit) computed at the                 |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| federal statutory rate                                  |   | $                        | 5,297  |   |   |   | 34 | % |   | $ | (3,296 | ) |   |   | 34 | % |   | $ | (6,342 | ) |   |   | 34 | % |
| (Decrease) increase in taxes resulting from:            |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Different tax rates and permanent differences           |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| applicable to foreign operations                        |   |                     | (2,377 | ) |   |   | -15 | % |   |   | 720 |   |   |   | -8 | % |   |   | (161 | ) |   |   | 1 | % |
|                                                    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reversal of liability for uncertain tax positions - net |   |                     | (887   | ) |   |   | -6 | % |   |   | (2,623 | ) |   |   | 27 | % |   |   | (1,846 | ) |   |   | 10 | % |
|                                                    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Permanent tax differences related to goodwill           |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| impairment with no tax benefit                          |   |                     | -      |   |   |   | 0 | % |   |   | 4,378 |   |   |   | -45 | % |   |   | 4,264 |   |   |   | -23 | % |
|                                                    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utilization of research and development and foreign     |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| tax credits                                             |   |                     | (549   | ) |   |   | -4 | % |   |   | (674 | ) |   |   | 7 | % |   |   | (383 | ) |   |   | 2 | % |
|                                                    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State taxes, net of federal benefit                     |   |                     | 309    |   |   |   | 2 | % |   |   | 290 |   |   |   | -3 | % |   |   | 368 |   |   |   | -2 | % |
|                                                    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other, including qualified production activity credits, |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SERP/COLI income, fair value of vested stock awards,    |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| over accruals and amortization of purchase              |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| accounting intangibles                                  |   |                     | 138    |   |   |   | 1 | % |   |   | (180 | ) |   |   | 2 | % |   |   | 376 |   |   |   | -2 | % |
| Tax provision (benefit) computed at the Company's       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| effective tax rate                                      |   | $                        | 1,931  |   |   |   | 12 | % |   | $ | (1,385 | ) |   |   | 14 | % |   | $ | (3,724 | ) |   |   | 20 | % |

----

Return to Index

|                                                            |   | December 31, |   |
|-----------------------------------------------------------------|--------|--------------|--------|
|                                                            |   | 2010         |   |   | 2009 |   |
|                                                            |   | Tax Effect   |   |   | Tax Effect |   |
| Deferred Tax Assets - current:                                  |   |         |   |   |   |   |
|    State tax credits                             |   | $            | 519    |   |   | $ | - |   |
|    Reserves and accruals                         |   |         | 923    |   |   |   | 917 |   |
|    Valuation allowance                           |   |         | (419   | ) |   |   | (102 | ) |
|                                                            |   | $            | 1,023  |   |   | $ | 815 |   |
|                                                            |   |         |   |   |   |   |   |   |
| Deferred Tax Assets - noncurrent:                               |   |         |   |   |   |   |   |   |
|    Unfunded pension liability                    |   | $            | 635    |   |   | $ | 341 |   |
|    Depreciation                                  |   |         | 161    |   |   |   | 138 |   |
|    Amortization                                  |   |         | 526    |   |   |   | 1,076 |   |
|    Federal, state and foreign net operating loss |   |         |   |   |   |   |   |   |
|       and credit carryforwards    |   |         | 1,060  |   |   |   | 1,893 |   |
|    Restructuring expenses                        |   |         | 193    |   |   |   | 294 |   |
|    Other accruals                                |   |         | 1,670  |   |   |   | 1,550 |   |
|    Valuation allowances                          |   |         | (1,044 | ) |   |   | (776 | ) |
|                                                            |   | $            | 3,201  |   |   | $ | 4,516 |   |

| 9.   | DEBT |
|----------------|------|

----

Return to Index

|                                   |   | Year Ended December 31, |   |
|----------------------------------------|--------|-------------------------|--------|
|                                   |   | 2010                    |   |   | 2009 |   |
| Sales commissions                      |   | $                       | 1,740  |   |   | $ | 1,506 |   |
| Subcontracting labor                   |   |                    | 2,467  |   |   |   | 2,615 |   |
| Salaries, bonuses and related benefits |   |                    | 7,405  |   |   |   | 1,475 |   |
| Litigation reserve                     |   |                    | 8,103  |   |   |   | - |   |
| Other                                  |   |                    | 2,830  |   |   |   | 2,395 |   |
|                                   |   | $                       | 22,545 |   |   | $ | 7,991 |   |

|                                   |   | Facility Lease |   |   | Termination     |   |   |   |   |
|----------------------------------------|--------|----------------|--------|--------|-----------------|--------|--------|--------|--------|
|                                   |   | Obligation     |   |   | Benefit Charges |   |   | Total  |   |
|                                   |   |           |   |   |            |   |   |   |   |
| Liability balance at January 1, 2009   |   | $              | 524    |   |            | $      | 437    |   |   | $ | 961 |   |
|                                   |   |           |   |   |            |   |   |   |   |   |   |   |
| New charges                            |   |           | 292    |   |            |   | 121    |   |   |   | 413 |   |
| Cash payments                          |   |           | (152   | )      |            |   | (558   | )      |   |   | (710 | ) |
|                                   |   |           |   |   |            |   |   |   |   |   |   |   |
| Liability balance at December 31, 2009 |   |           | 664    |   |            |   | -      |   |   |   | 664 |   |
|                                   |   |           |   |   |            |   |   |   |   |   |   |   |
| Cash payments                          |   |           | (157   | )      |            |   | -      |   |   |   | (157 | ) |
|                                   |   |           |   |   |            |   |   |   |   |   |   |   |
| Liability balance at December 31, 2010 |   | $              | 507    |   |            | $      | -      |   |   |  $ | 507 |   |

----

Return to Index

|                                         |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|----------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Net Sales to External Customers:             |   |   |    |   |   |   |    |   |   |
|     North America        |   | $      | 111,888 |   |   | $      | 41,898  |   |   | $ | 67,380 |   |
|     Asia                 |   |   | 156,635 |   |   |   | 123,764 |   |   |   | 165,164 |   |
|     Europe               |   |   | 34,016  |   |   |   | 17,091  |   |   |   | 25,806 |   |
|                                         |   | $      | 302,539 |   |   | $      | 182,753 |   |   | $ | 258,350 |   |
|                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Net Sales:                                   |   |   |    |   |   |   |    |   |   |   |   |   |
|     North America        |   | $      | 125,383 |   |   | $      | 51,189  |   |   | $ | 79,862 |   |
|     Asia                 |   |   | 196,243 |   |   |   | 144,572 |   |   |   | 188,718 |   |
|     Europe               |   |   | 35,150  |   |   |   | 18,110  |   |   |   | 27,143 |   |
|     Less intergeographic |   |   |    |   |   |   |    |   |   |   |   |   |
|       revenues |   |   | (54,237 | )      |   |   | (31,118 | )      |   |   | (37,373 | ) |
|                                         |   | $      | 302,539 |   |   | $      | 182,753 |   |   | $ | 258,350 |   |
|                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Income (Loss) from Operations:               |   |   |    |   |   |   |    |   |   |   |   |   |
|     North America        |   | $      | 4,181   |   |   | $      | (205    | )      |   | $ | (12,646 | ) |
|     Asia                 |   |   | 9,357   |   |   |   | (16,462 | )      |   |   | 1,202 |   |
|     Europe               |   |   | 1,622   |   |   |   | (684    | )      |   |   | 695 |   |
|                                         |   | $      | 15,160  |   |   | $      | (17,351 | )      |   | $ | (10,749 | ) |
|                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Total Assets:                                |   |   |    |   |   |   |    |   |   |   |   |   |
|     North America        |   | $      | 110,984 |   |   | $      | 131,078 |   |   |   |   |   |
|     Asia                 |   |   | 155,414 |   |   |   | 107,546 |   |   |   |   |   |
|     Europe               |   |   | 10,774  |   |   |   | 7,322   |   |   |   |   |   |
|                                         |   | $      | 277,172 |   |   | $      | 245,946 |   |   |   |   |   |
|                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Capital Expenditures:                        |   |   |    |   |   |   |    |   |   |   |   |   |
|     North America        |   | $      | 870     |   |   | $      | 353     |   |   | $ | 948 |   |
|     Asia                 |   |   | 1,371   |   |   |   | 1,979   |   |   |   | 5,758 |   |
|     Europe               |   |   | 186     |   |   |   | 25      |   |   |   | 181 |   |
|                                         |   | $      | 2,427   |   |   | $      | 2,357   |   |   | $ | 6,887 |   |
|                                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Depreciation and Amortization Expense:       |   |   |    |   |   |   |    |   |   |
|     North America        |   | $      | 3,862   |   |   | $      | 1,535   |   |   | $ | 1,787 |   |
|     Asia                 |   |   | 4,513   |   |   |   | 5,087   |   |   |   | 5,484 |   |
|     Europe               |   |   | 461     |   |   |   | 156     |   |   |   | 172 |   |
|                                         |   | $      | 8,836   |   |   | $      | 6,778   |   |   | $ | 7,443 |   |

----

Return to Index

|                                           |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Net Sales by Geographic Area:                  |   |   |    |   |   |   |    |   |   |
|                                           |   |   |    |   |   |   |    |   |   |
|     United States          |   | $      | 111,888 |   |   | $      | 41,898  |   |   | $ | 67,380 |   |
|     Macao                  |   |   | 156,635 |   |   |   | 123,764 |   |   |   | 165,164 |   |
|     United Kingdom         |   |   | 10,747  |   |   |   | -       |   |   |   | - |   |
|     Germany                |   |   | 20,027  |   |   |   | 13,959  |   |   |   | 21,280 |   |
|     Czech Republic         |   |   | 3,242   |   |   |   | 3,132   |   |   |   | 4,526 |   |
|     Consolidated net sales |   | $      | 302,539 |   |   | $      | 182,753 |   |   | $ | 258,350 |   |
|                                           |   |   |    |   |   |   |    |   |   |   |   |   |
| Net Sales by Major Product Line:               |   |   |    |   |   |   |    |   |   |   |   |   |
|                                           |   |   |    |   |   |   |    |   |   |   |   |   |
|     Magnetics              |   | $      | 127,664 |   |   | $      | 86,326  |   |   | $ | 118,552 |   |
|     Interconnect           |   |   | 101,059 |   |   |   | 32,447  |   |   |   | 47,407 |   |
|     Modules                |   |   | 61,092  |   |   |   | 54,323  |   |   |   | 77,285 |   |
|     Circuit protection     |   |   | 12,724  |   |   |   | 9,657   |   |   |   | 15,106 |   |
|     Consolidated net sales |   | $      | 302,539 |   |   | $      | 182,753 |   |   | $ | 258,350 |   |

----

Return to Index

|                                                     |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Long-lived Assets by Geographic Location:                |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |
|     United States                    |   | $      | 30,904 |   |   | $      | 17,549 |   |
|     People's Republic of China (PRC) |   |   | 20,999 |   |   |   | 24,199 |   |
|     All other foreign countries      |   |   | 2,794  |   |   |   | 1,094 |   |
|     Consolidated long-lived assets   |   | $      | 54,697 |   |   | $      | 42,842 |   |

----

Return to Index

----

Return to Index

| December 31,                                      |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                              |   |   |   |   |   |   |   |   |   |
| Change in benefit obligation:                     |   |   |   |   |   |   |   |   |   |
| Projected benefit obligation at beginning of year |   | $      | 5,622  |   |   | $      | 5,910  |   |   | $ | 4,698 |   |
| Service cost                                      |   |   | 340    |   |   |   | 383    |   |   |   | 293 |   |
| Interest cost                                     |   |   | 336    |   |   |   | 352    |   |   |   | 303 |   |
| Benefits paid                                     |   |   | (56    | )      |   |   | (75    | )      |   |   | (75 | ) |
| Actuarial (gains) losses                          |   |   | 1,108  |   |   |   | (948   | )      |   |   | 691 |   |
| Minimum pension obligation and                    |   |   |   |   |   |   |   |   |   |   |   |   |
|   unfunded pension liability            |   | $      | 7,350  |   |   | $      | 5,622  |   |   | $ | 5,910 |   |
| Funded status of plan:                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Underfunded status                                |   | $      | (7,350 | )      |   | $      | (5,622 | )      |   |   |   |   |
| Accrued pension cost                              |   | $      | (7,350 | )      |   | $      | (5,622 | )      |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in plan assets:                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of plan assets, beginning of year      |   | $      | -      |   |   | $      | -      |   |   | $ | - |   |
| Company contributions                             |   |   | 56     |   |   |   | 75     |   |   |   | 75 |   |
| Benefits paid                                     |   |   | (56    | )      |   |   | (75    | )      |   |   | (75 | ) |
| Fair value of plan assets, end of year            |   | $      | -      |   |   | $      | -      |   |   | $ | - |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance sheet amounts:                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Minimum pension obligation and                    |   |   |   |   |   |   |   |   |   |   |   |   |
|   unfunded pension liability            |   | $      | 7,350  |   |   | $      | 5,622  |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts recognized in accumulated other           |   |   |   |   |   |   |   |   |   |   |   |   |
|    comprehensive income, pretax:   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prior service cost                                |   | $      | 1,143  |   |   | $      | 1,276  |   |   |   |   |   |
| Net loss (gain)                                   |   |   | 932    |   |   |   | (176   | )      |   |   |   |   |
|                                              |   | $      | 2,075  |   |   | $      | 1,100  |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| The components of SERP expense are as follows:    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Year Ended December 31,                           |   |   | 2010   |   |   |   | 2009   |   |   |   | 2008 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Service cost                                      |   | $      | 340    |   |   | $      | 383    |   |   | $ | 293 |   |
| Interest cost                                     |   |   | 336    |   |   |   | 352    |   |   |   | 303 |   |
| Net amortization and deferral                     |   |   | 133    |   |   |   | 147    |   |   |   | 133 |   |
| Total SERP expense                                |   | $      | 809    |   |   | $      | 882    |   |   | $ | 729 |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Assumption percentages:                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount rate                                     |   |   | 5.50   | %      |   |   | 6.00   | %      |   |   | 6.00 | % |
| Rate of compensation increase                     |   |   | 3.00   | %      |   |   | 3.00   | %      |   |   | 3.00 | % |

----

Return to Index

| Years Ending |   |   |   |
|--------------|--------|--------|--------|
| December 31, |   |   |   |
|         |   |   |   |
| 2011         |   | $      | -      |   |
| 2012         |   |   | 79     |   |
| 2013         |   |   | 137    |   |
| 2014         |   |   | 184    |   |
| 2015         |   |   | 239    |   |
| 2016 - 2020  |   |   | 1,804  |   |

----

Return to Index

|                             |   |   |    |   |      |   | Weighted-   |   |                                                                                                                                        |
|----------------------------------|--------|--------|---------|--------|-----------|--------|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                             |   |   |    |   | Weighted- |   | Average     |   | Aggregate                                                                                                                                   |
|                             |   |   |    |   | Average   |   | Remaining   |   | Intrinsic                                                                                                                                   |
|                             |   |   |    |   | Exercise  |   | Contractual |   | Value                                                                                                                                       |
| Stock Options                    |   | Shares |    |   | Price     |   | Term        |   | (in 000's)                                                                                                                                  |
| Outstanding at January 1, 2010   |   |   | 34,000  |   |      | $      | 29.50       |   |                                                                                                                                        |   |   |
| Exercised                        |   |   | -       |   |      |   | -           |   |                                                                                                                                        |   |   |
| Granted                          |   |   | -       |   |      |   | -           |   |                                                                                                                                        |   |   |
| Cancelled                        |   |   | (34,000 | )      |      |   | 29.50       |   |                                                                                                                                        |   |   |
| Outstanding at December 31, 2010 |   |   | -       |   |      |   | -           |   |                        - |   |                     - |
| Exercisable at December 31, 2010 |   |   | -       |   |      | $      | -           |   |                        - |   |  $                 - |

|                             |   |   |    |   |     |   | Weighted    |
|----------------------------------|--------|--------|---------|--------|----------|--------|-------------|
|                             |   |   |    |   | Weighted |   | Average     |
|                             |   |   |    |   | Average  |   | Remaining   |
| Restricted Stock                 |   |   |    |   | Award    |   | Contractual |
| Awards                           |   | Shares |    |   | Price    |   | Term        |
|                             |   |   |    |   |     |   |        |
| Outstanding at January 1, 2010   |   |   | 273,850 |   |     | $      | 24.96       |   |  3.6 years |
| Granted                          |   |   | 68,900  |   |     |   | 21.35       |   |   |
| Vested                           |   |   | (60,425 | )      |     |   | 33.21       |   |   |
| Forfeited                        |   |   | (5,900  | )      |     |   | 23.01       |   |   |
| Outstanding at December 31, 2010 |   |   | 276,425 |   |     | $      | 22.30       |   |  3.4 years |

----

Return to Index

| Years Ending |   |   |   |
|--------------|--------|--------|--------|
| December 31, |   |   |   |
|         |   |   |   |
| 2011         |   | $      | 2,956  |   |
| 2012         |   |   | 2,330  |   |
| 2013         |   |   | 1,550  |   |
| 2014         |   |   | 1,079  |   |
| 2015         |   |   | 799    |   |
| Thereafter   |   |   | -      |   |
|         |   | $      | 8,714  |   |

----

Return to Index

----

Return to Index

|                                                             |   | 2010   |   |   | 2009   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                             |   |   |   |   |   |   |
| Foreign currency translation adjustment                          |   | $      | 882    |   |   | $      | 1,789 |   |
| Unrealized holding gain (loss) on available-for-sale             |   |   |   |   |   |   |   |   |
|    securities, net of taxes of $322 and $42 as of |   |   |   |   |   |   |   |   |
|    December 31, 2010 and 2009                     |   |   | 519    |   |   |   | 62 |   |
| Unfunded SERP liability, net of taxes of $(635) and              |   |   |   |   |   |   |   |   |
|    $(341) as of December 31, 2010 and 2009        |   |   | (1,440 | )      |   |   | (759 | ) |
|                                                             |   |   |   |   |   |   |   |   |
| Accumulated other comprehensive (loss) income                    |   | $      | (39    | )      |   | $      | 1,092 |   |

----

Return to Index

|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |
|------------------------------------------|--------|---------------|-----------|--------|----------|--------|----------|---------------|--------|--------|---------------|--------|--------|--------------|--------------|
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   | Total Year   |         |
|                                     |   | Quarter Ended |      |   | Ended    |   |
|                                     |   | March 31,     |      |   | June 30, |   |     | September 30, |   |   | December 31,  |   |   | December 31, |         |
|                                     |   | 2010          |      |   | 2010     |   |     | 2010          |   |   | 2010 (e)      |   |   | 2010 (a)     |         |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |
| Net sales                                |   | $             | 56,149    |   |     | $      | 77,732   |          |   | $      | 84,961        |   |   | $            | 83,697       |   |   | $ | 302,539 |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Cost of sales                            |   |          | 47,053    |   |     |   | 61,676   |          |   |   | 64,795        |   |   |         | 65,661       |   |   |   | 239,185 |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Net earnings (loss)                      |   |          | 32        |   |     |   | 4,695    |          |   |   | 9,944         |   |   |         | (1,022       | ) |   |   | 13,649 |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Earnings (loss) per share:               |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Class A common share - basic and diluted |   | $             | 0.00      |   |     | $      | 0.38     |          |   | $      | 0.81          |   |   | $            | (0.09        | ) |   | $ | 1.10 |   |
| Class B common share - basic and diluted |   | $             | 0.00      |   |     | $      | 0.41     |          |   | $      | 0.86          |   |   | $            | (0.09        | ) |   | $ | 1.18 |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   | Total Year |   |
|                                     |   | Quarter Ended |      |   | Ended    |   |
|                                     |   |          | March 31, |   |     |   | June 30, |          |   |   | September 30, |   |   |         | December 31, |   |   | December 31, |   |
|                                     |   |          | 2009 (d)  |   |     |   | 2009     |          |   |   | 2009 (c)      |   |   |         | 2009 (b)     |   |   |   | 2009 (a) |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Net sales                                |   | $             | 43,871    |   |     | $      | 44,934   |          |   | $      | 45,283        |   |   | $            | 48,665       |   |   | $ | 182,753 |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Cost of sales                            |   |          | 38,211    |   |     |   | 40,192   |          |   |   | 41,516        |   |   |         | 41,535       |   |   |   | 161,454 |   |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Net earnings (loss)                      |   |          | 816       |   |     |   | (1,272   | )             |   |   | (10,752       | )      |   |         | 2,898        |   |   |   | (8,310 | ) |
|                                     |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Earnings (loss) per share:               |   |          |      |   |     |   |     |          |   |   |          |   |   |         |         |   |   |   |   |   |
| Class A common share - basic and diluted |   | $             | 0.06      |   |     | $      | (0.11    | )             |   | $      | (0.90         | )      |   | $            | 0.23         |   |   | $ | (0.71 | ) |
| Class B common share - basic and diluted |   | $             | 0.07      |   |     | $      | (0.11    | )             |   | $      | (0.94         | )      |   | $            | 0.25         |   |   | $ | (0.72 | ) |

| (a)   | Quarterly amounts of earnings per share may not agree to the total for the year due to rounding. |
|-----------------|--------------------------------------------------------------------------------------------------|

| (b)   | Net earnings for the quarter ended December 31, 2009 include a gain on sale of investment of $5.4 million ($3.3 million after tax), primarily related to the sale of the investment in Power-One common stock. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The net loss for the quarter ended September 30, 2009 includes a goodwill impairment charge of $12.9 million related to the Company’s Asia operating segment and a $2.0 million ($1.2 million after tax) charge related to a licensing fee. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Net earnings for the quarter ended March 31, 2009 include a gain on the sale of property in Jersey City, New Jersey of $4.7 million ($2.9 million after tax) offset by restructuring charges associated with the closure of the Company’s Westborough, Massachusetts facility of $0.4 million ($0.3 million after tax). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | The net loss for the quarter ended December 31, 2010 includes a litigation charge of $8.1 million related to the SynQor lawsuit ($8.0 million after tax). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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| BEL FUSE INC. AND SUBSIDIARIES                             |   |
|------------------------------------------------------------|--------|
| SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS            |   |
| (Amounts in thousands)                                     |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Column A                                                   |   | Column B |   |   | Column C |   |   | Column D |   |   | Column E |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   | Additions |   |   |   |   |   |   |   |
|                                                       |   | Balance at |   |   |   | (1) |   |   |   | (2) |   |   |   |   |   | Balance |   |
|                                                       |   | beginning |   |   | Charged to costs |   |   | Charged to other |   |   | Deductions |   |   | at end |   |
| Description                                                |   | of period |   |   | and expenses |   |   | accounts (b) |   |   | (a) |   |   | of period |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year ended December 31, 2010:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Allowance for doubtful accounts                |   | $ | 596 |   |   | $ | 35 |   |   | $ | 29 |   |   | $ | (7 | ) |   | $ | 653 |   |
|   Allowance for excess and obsolete inventory    |   | $ | 2,767 |   |   | $ | 2,560 |   |   | $ | (14 | ) |   | $ | (706 | ) |   | $ | 4,607 |   |
|   Deferred tax assets - valuation allowances     |   | $ | 878 |   |   | $ | 614 |   |   | $ | - |   |   | $ | (29 | ) |   | $ | 1,463 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year ended December 31, 2009:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Allowance for doubtful accounts                |   | $ | 660 |   |   | $ | 36 |   |   | $ | 6 |   |   | $ | (106 | ) |   | $ | 596 |   |
|   Allowance for excess and obsolete inventory    |   | $ | 4,051 |   |   | $ | (849 | ) |   | $ | (26 | ) |   | $ | (409 | ) |   | $ | 2,767 |   |
|   Deferred tax assets - valuation allowances     |   | $ | 971 |   |   | $ | 231 |   |   | $ | - |   |   | $ | (324 | ) |   | $ | 878 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year ended December 31, 2008:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Allowance for doubtful accounts                |   | $ | 977 |   |   | $ | (191 | ) |   | $ | (43 | ) |   | $ | (83 | ) |   | $ | 660 |   |
|   Allowance for excess and obsolete inventory    |   | $ | 3,266 |   |   | $ | 1,079 |   |   | $ | (10 | ) |   | $ | (284 | ) |   | $ | 4,051 |   |
|   Deferred tax assets - valuation allowances     |   | $ | 331 |   |   | $ | 640 |   |   | $ | - |   |   | $ | - |   |   | $ | 971 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (a)  Write offs                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (b) Includes foreign currency translation adjustments |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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Item 9

Item 9A

Item 9B

|   |   |
|--------|--------|

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Item 10

Item 11

Item 12.  

| Plan Category                                              |   | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights(a) |                                                                                                                                                    | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights(b) |   | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))(c) |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plans approved by security holders     |   |                                                                                           |                          - |                                                                           | $      | -                                                                                                                                              |   |   |                      565,150 |
|                                                       |   |                                                                                           |                                                                                                                                                    |                                                                           |   |                                                                                                                                           |   |   |   |
| Equity compensation plans not approved by security holders |   |                                                                                           |                          - |                                                                           |   |                        -    |   |   |                                 - |
|                                                       |   |                                                                                           |                                                                                                                                                    |                                                                           |   |                                                                                                                                           |   |   |   |
| Totals                                                     |   |                                                                                           |                          - |                                                                           | $      | -                                                                                                                                              |   |   |                      565,150 |

Item 13

Item 14

|   |   |
|--------|--------|

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|   |   |
|--------|--------|

|   | PART IV |
|--------|---------|

| Item 15. | Exhibits, Financial Statement Schedules                                        |                                                                                                                                     |   |   |
|----------|--------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|     |                                                                           |                                                                                                                                     |   | Page   |   |
| (a)      | Financial Statements                                                           |                                                                                                                                     |   |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     | 1. Financial Statements filed as part of this Annual Report on Form 10-K: |                                                                                                                                     |   |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | Report of Independent Registered Public Accounting Firm                                                                                  |   | F-1    |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | Consolidated Balance Sheets as of December 31, 2010 and 2009                                                                             |   | F-2    |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | Consolidated Statements of Operations for Each of the Three Years in the Period Ended December 31, 2010                                  |   | F-3    |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | Consolidated Statements of Stockholders' Equity for Each of the Three Years in the Period Ended December 31, 2010                        |   | F-4    |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | Consolidated Statements of Cash Flows for Each of the Three Years in the Period Ended December 31, 2010                                  |   | F-5    |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | Notes to Consolidated Financial Statements                                                                                               |   | F-7    |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     | 2. Financial statement schedules filed as part of this report:            |                                                                                                                                     |   |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | Schedule II:  Valuation and Qualifying Accounts                                                                                |   | S-1    |   |
|     |                                                                           |                                                                                                                                     |   |   |   |
|     |                                                                           | All other schedules are omitted because they are inapplicable, not required or the information is included in the consolidated financial |   |   |   |
|     |                                                                           | statements or notes thereto.                                                                                                             |   |   |   |

| (b) Exhibits |                                                                                                                                                                                                                                                                                                                                          |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                                                                                                                                                                                                                          |
| Exhibit No.:      |                                                                                                                                                                                                                                                                                                                                          |
|              |                                                                                                                                                                                                                                                                                                                                          |
| 3.1               | Certificate of Incorporation, as amended, is incorporated by reference to Exhibit 3.1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 1999.                                                                                                                                                                 |
|              |                                                                                                                                                                                                                                                                                                                                          |
| 3.2               | By-laws, as amended, are incorporated by reference to Exhibit 4.2 of the Company's Registration Statement on Form S-2 (Registration No. 33-16703) filed with the Securities and Exchange Commission on August 25, 1987.                                                                                                                       |
|              |                                                                                                                                                                                                                                                                                                                                          |
|  10.1† | 2002 Equity Compensation Program.  Incorporated by reference to the Registrant’s proxy statement for its 2002 annual meeting of shareholders.                                                                                                                                                                                 |
|              |                                                                                                                                                                                                                                                                                                                                          |
| 10.2              | Credit and Guaranty Agreement, dated as of February 12, 2007, by and among Bel Fuse, Inc., as Borrower, the Subsidiary Guarantors party thereto and the Bank of America, N.A., as Lender.  Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 16, 2007 and incorporated herein by reference. |
|              |                                                                                                                                                                                                                                                                                                                                          |
|  10.3† | Amended and Restated Bel Fuse Supplemental Executive Retirement Plan, dated as of April 17, 2007.  Filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 23, 2007 and incorporated herein by reference.                                                                                            |
|              |                                                                                                                                                                                                                                                                                                                                          |
| 10.4              | Contract for Purchase and Sale of Real Estate dated July 15, 2004 between Bel Fuse Inc. and Fields Development Group Co.  Incorporated by reference to Exhibit 10.9 of the Company’s Form 10-K for the year ended December 31, 2004.                                                                                          |
|              |                                                                                                                                                                                                                                                                                                                                          |

|   |   |
|--------|--------|

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| 10.5         | First Amendment to Credit and Guaranty Agreement dated as of April 30, 2008, by and among Bel Fuse, Inc., as Borrower, the Subsidiary Guarantors party thereto and the Bank of America, N.A., as Lender.  Filed as Exhibit 10.6 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and incorporated herein by reference.   |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.6         | Second Amendment to Credit and Guaranty Agreement dated as of June 30, 2009, by and among Bel Fuse, Inc., as Borrower, the Subsidiary Guarantors party thereto and the Bank of America, N.A., as Lender.  Filed as Exhibit 10.7 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and incorporated herein by reference.   |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.7         | Stock purchase agreement by and among Safran USA, Inc., Safran UK Limited and Bel Fuse Inc., dated as of December 28, 2009.  Filed as Exhibit 10.8 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and incorporated herein by reference.                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.8         | Third Amendment to Credit and Guaranty Agreement dated as of January 29, 2010, by and among Bel Fuse, Inc., as Borrower, the Subsidiary Guarantors party thereto and the Bank of America, N.A., as Lender.  Filed as Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and incorporated herein by reference. |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 11.1         | A statement regarding the computation of earnings per share is omitted because such computation can be clearly determined from the material contained in this Annual Report on Form 10-K.                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 21.1*        | Subsidiaries of the Registrant.                                                                                                                                                                                                                                                                                                                                          |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 23.1*        | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 24.1*        | Power of attorney (included on the signature page)                                                                                                                                                                                                                                                                                                                       |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 31.1*        | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                   |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
| 31.2*        | Certification of the Vice President of Finance pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
|  32.1** | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes - Oxley Act of 2002.                                                                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                     |
|  32.2** | Certification of the Vice-President of Finance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                |
|         |                                                                                                                                                                                                                                                                                                                                                                     |

|   |   |
|--------|--------|

----

Return to Index

SIGNATURES

| By:                              | /s/ Daniel Bernstein                  |
|----------------------------------|---------------------------------------|
|                             | Daniel Bernstein                      |
|                             | President and Chief Executive Officer |
|                             |                                  |
| Dated:  March 11, 2011 |                                  |

| Signature             |   | Title                                   |   | Date           |
|-----------------------|--------|-----------------------------------------|--------|----------------|
|                  |   |                                    |   |           |
| /s/ Daniel Bernstein  |   | President, Chief Executive Officer      |   | March 11, 2011 |
| Daniel Bernstein      |   | and Director                            |   |           |
|                  |   |                                    |   |           |
| /s/ Howard Bernstein  |   | Director                                |   | March 11, 2011 |
| Howard B. Bernstein   |   |                                    |   |           |
|                  |   |                                    |   |           |
| /s/ Robert H. Simandl |   | Director                                |   | March 11, 2011 |
| Robert H. Simandl     |   |                                    |   |           |
|                  |   |                                    |   |           |
| /s/ Peter Gilbert     |   | Director                                |   | March 11, 2011 |
| Peter Gilbert         |   |                                    |   |           |
|                  |   |                                    |   |           |
| /s/ John Tweedy       |   | Director                                |   | March 11, 2011 |
| John Tweedy           |   |                                    |   |           |
|                  |   |                                    |   |           |
| /s/ John Johnson      |   | Director                                |   | March 11, 2011 |
| John Johnson          |   |                                    |   |           |
|                  |   |                                    |   |           |
| /s/ Avi Eden          |   | Director                                |   | March 11, 2011 |
| Avi Eden              |   |                                    |   |           |
|                  |   |                                    |   |           |
| /s/ Colin Dunn        |   | Vice President of Finance and Secretary |   | March 11, 2011 |
| Colin Dunn            |   |                                    |   |           |

|   | -35- |
|--------|------|