SILCF Silicom Ltd (MM)

Silicom Ltd. (Nasdaq: SILCF) today announced that it has achieved a strategic Design Win for its BYPASS Gigabit Ethernet Adapters from a Tier-1 communications equipment manufacturer. This prestigious manufacturer will use a specific-form-factor version of Silicom's advanced adapters to guarantee mission-critical data availability in a new line of security appliances. So far, the customer has placed a $70,000 order for prototypes, and has guided Silicom to expect orders in 2006 for both additional prototypes and serial-production units. This Design Win adds to the momentum that has been building for the Company over the past two years. Over this period, the Company has accumulated over 30 Design Wins for its BYPASS and multi-port adapters, enabling it to post seven consecutive quarters of growth and to achieve its highest quarterly revenues in eight years. Commenting on the news, Shaike Orbach, Silicom's President and CEO, said, "We are proud to receive this important Design Win from another prestigious communications industry player, a testament to the cost-performance of our BYPASS adapters and to the quality of our rapid customization capabilities. As with the majority of our Design Wins, we believe this Win has the potential to lead to a flow of orders, representing a fertile new source of revenues that will build over time. With a strong sales pipeline and growing needs in our target markets, we are working to achieve additional Design Wins and pleased by the pace of our growth." 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. Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties, or other factors not under the Company's control, which may cause actual results, performance, or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission. The Company disclaims any duty to update such statements.