This paper details the development of a new universal power supply and bi-directional inverter-charger which does not use a 50 Hz BF output transformer. The control and regulation are based on a 16 bit fixed point Digital Signal Processor (DSP). With the help of flexible digital regulation algorithms, the device can operate in many different configurations which include an inverter, battery charger, stand-alone, injection, boost, and parallel. A prototype was built and tested in the range of 1.5kVA. Key features are the reduction in size and weight of the equipment, the speed of regulation and the quality of grid and battery currents.