Silicom Announces Dividend Distribution Policy

  Silicom Announces Dividend Distribution Policy

Business Wire

KFAR SAVA, Israel -- January 14, 2013

Silicom Ltd. (NASDAQ:SILC) (TASE:SILC) today announced that its Board of
Directors has adopted a policy for distributing dividends, subject to all
applicable laws. According to this policy, each year the Company will
distribute a dividend of up to 50% of its annual distributable profits.

As part of the stated policy, the Company's Board of Directors reserves the
right to declare additional dividend distributions, to change the rate of
dividend distributions (either as a policy or on a one-time basis), to cancel
a specific distribution or to cancel the policy as a whole at any time, at its
sole discretion.

Commenting on the news, Shaike Orbach, Silicom’s President and CEO, said,
"During the past several years, Silicom’s success, which has taken the Company
to a whole new level of revenues and profits, has built our cash balance to
its current strong level of over $50 million, a sum that is more than
sufficient to fund our multi-layered strategy for achieving accelerated
growth.

“As such, we believe the time has come to share our success more directly with
our shareholders through this policy of significant annual dividend
distributions. We are confident that our growth in the years to come, coupled
with the substantial dividends which we plan to distribute, will create
greater value for our shareholders and employees while encouraging long-term
interest and investment in our Company.”

The actual distribution of a dividend will be subject to meeting the
conditions required by applicable law, including the distribution tests set
forth in Section 302 of the Israeli Companies Law - 1999, and to the specific
decision of the Company's Board of Directors for each distribution.

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance networking
solutions designed to increase the throughput and availability of networking
appliances and server-based systems.

Silicom’s large and growing base of OEM customers includes most of the
market-leading players in the areas of WAN Optimization, Security and other
mission-critical gateway applications. Silicom’s products include a variety of
multi-port 1/10 Gigabit Ethernet server adapters, innovative internal and
external BYPASS solutions and advanced Smart adapters, including SSL
encryption solutions and Redirector adapters.

In addition, Silicom's patented SETAC (Server To Appliance Converter) product
family is a unique solution that enables standard servers to be configured as
network appliances with high-density front networking ports and no-hassle port
modularity.

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.

Contact:

Company:
Silicom Ltd.
Eran Gilad, CFO
+972-9-764-4555
erang@silicom.co.il
or
Investor relations:
CCG Israel Investor Relations
Kenny Green / Ehud Helft
+1 646 201 9246
silicom@ccgisrael.com
 
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