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Silicom Announces Additional Design Win with Leading Security

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midastouch017   Monday, 02/27/06 10:16:19 AM
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Silicom Announces Additional Design Win with Leading Security Appliance Provider

Monday February 27, 6:59 am ET

KFAR SAVA, Israel--(BUSINESS WIRE)--Feb. 27, 2006--Silicom Ltd. (NASDAQ & TASE: SILC) today announced that it has secured a new Design Win from a leading Internet security solution company, the second Design Win that it has announced this month. The Design Win is for four of Silicom's advanced Multiport and Bypass Gigabit Ethernet adapters, three of which are designed for use in the customer's state-of-the-art PCI-EXPRESS-based platforms. All four Silicom products are fully compliant with the RoHS (Reduction Of Hazardous Substances) directive.

The customers' security proxy appliances provide visibility and control of Internet communications to protect against risks from spyware, web viruses, inappropriate surfing, instant messaging (IM), video streaming and peer-to-peer (P2P) file sharing while simultaneously improving web performance. It will use Silicom adapters in two of its appliances to assure high-quality wirespeed data transfer, maintain connectivity in various potential failure scenarios and to achieve maximum flexibility in their connectivity options.

"We are pleased to report our second new Design Win for the month, and to add another leading Security Industry player to our growing list of customers," said Mr. Shaike Orbach, President and CEO of Silicom. "Having built its reputation on high-throughput security proxy solutions, we are proud that this customer is turning to Silicom adapters to help it deliver on its performance and connectivity promises. As with the majority of our Design Wins, we expect that initial orders from this customer will be followed by a ramp up period until they reach mass production levels. In general, the process of securing the Design Win itself helps us build a close relationship with our customer which expands over time, leading naturally to repeat orders and to an expanded use of our products in more of their solutions. In fact, the 30+ Design Wins that we accumulated over the past two years were the primary drivers of the record revenues and profits that we posted throughout 2005."

Mr. Orbach continued, "To take full advantage of our growing market recognition, we continue working to build our penetration of the Security Appliances market, as well as additional high-growth segments including Network Acceleration, Load Balancing and others. With over 100 potential customers in the pipeline, we believe we are favorably positioned for long term growth."

Note regarding the RoHS Directive: The RoHS (Reduction Of Hazardous Substances) Directive of the European Union (EU) (commonly called the "Lead Free Law") sets maximum concentration limits on hazardous materials used in electrical and electronic equipment. Implementation of the RoHS Directive is required in all EU countries by July 1, 2006, and many states within the U.S. have adopted or are considering adoption of similar laws. Silicom is among the first companies world wide offering RoHS Compliant multi port and bypass server adapters.

About Silicom

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



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