Silicom Ltd. (SILCF)

[midastouch017]

Silicom Penetrates Japan: Major Design Win with World Leading, Top Tier Japanese Server Manufacturer

Monday May 1, 8:32 am ET

KFAR SAVA, Israel--(BUSINESS WIRE)--May 1, 2006--Silicom Ltd. (NASDAQ & TASE: SILC) today announced a major new Design Win from one of the world's top tier server manufacturers, representing its first Japanese Design Win. The Design Win followed a rigorous 30-month discussion, evaluation and qualification process during which the customer scrutinized Silicom's manufacturing and support capabilities together with all aspects of the Silicom copper and fiber Gigabit Server adapters that the customer intends to use within its server systems.

Silicom has already delivered first shipments of the Company's server adapters to the customer per its initial production orders and received additional orders for future deliveries.

"The selection of our product by such a large and prestigious company - especially one that is known for its extreme standards for quality, reliability and performance -- takes our credibility to a new level and paves the way towards additional penetration of the strategic Japanese market," said Mr. Shaike Orbach, President and CEO of Silicom. "Beyond the significant potential represented by this Design Win, we will now begin marketing additional products within the same division, as well as to the other divisions of this customer's worldwide organization which have indicated an interest in our products. In addition, the Design Win is already making it easier for us to gain entry into other major Japanese manufacturers.

"As such, this Design Win is an important boost to the momentum that we have been building steadily over the past two years. We are proud to have recently posted another record quarter with the highest sales and profits in our history. With growing markets, a base of about 35 existing Design Wins, a top-quality reputation and a strong track record with the industry's largest players, we are more excited than ever regarding our future prospects."

Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, security appliances and other mission-critical gateway applications. Silicom also offers a broad range of its traditional PC Cards, PCI cards and USB products. For more information, please visit: www.silicom.co.il.

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