Top-Tier Networking Giant to Standardize on Silicom’s SETAC Modules for Its Next-Generation Appliances

  Top-Tier Networking Giant to Standardize on Silicom’s SETAC Modules for Its
  Next-Generation Appliances

  – Together with Currently-Used SETAC Kits, the Potential of Sales to This
          Customer May Now Reach Several Million Dollars Per Year -

Business Wire

KFAR SAVA, Israel -- April 2, 2013

Silicom Ltd. (NASDAQ:SILC) (TASE:SILC) today announced that one of the world’s
largest networking companies, which for the past 18 months has been using
Silicom’s SETAC SErver To Appliance Converter kits in several network
appliance product lines, has now also standardized on Silicom’s SETAC modules
for its next-generation appliances. The Company expects this decision to boost
this customer’s purchases of SETAC products to up to several million dollars
per year.

“We are proud that this premier networking leader views Silicom products as
strategic enablers, as evidenced by its design of more and more Silicom
solutions into its growing portfolio of advanced network appliances,”
commented Shaike Orbach, Silicom’s President and CEO. “When they became one of
our first volume users of SETAC kits, we indicated that they could become
volume users also of our SETAC modules, and this has now become the case. We
fully expect that their use of our solutions will further increase in the
years to come, representing a reliable and continuously growing revenue driver
for our Company.”

Mr. Orbach added, “The fact that this customer’s usage of SETAC products has
moved into the use of SETAC Modules in line with our predictions 18 months ago
– together with the steady growth in the number of our SETAC wins to other
customers - confirms our ‘read’ of the market and our understanding of its
true needs. This insight, more than any other advantage, continues to be the
key to our success, assuring that we apply our considerable technology and
agility assets to the most vexing pain points of some of the industry’s
largest players. We are confident that this ability will enable us to continue
accelerating our growth in the future.”

                                      ##

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance networking
and data infrastructure solutions. Designed primarily to increase data center
efficiency, Silicom’s solutions dramatically improve the throughput and
availability of networking appliances and other server-based systems.

Silicom’s products are used by a large and growing base of OEM customers, many
of whom are market leaders, as performance-boosting solutions for their
offerings in the Application Delivery, WAN Optimization, Security and other
mission-critical segments within the fast-growing virtualization, cloud
computing and big data markets. Silicom’s product portfolio includes
multi-port 1/10 Gigabit Ethernet server adapters, Intelligent Bypass
solutions, Encryption accelerators and a variety of innovative Smart adapters.
These products are available for incorporation directly into our OEM
customers' systems, or provided as part of Silicom’s patented SETAC (Server To
Appliance Converter), a unique approach to the provision of high quality
standard platforms with modular front connectivity.

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