Silicom Secures Another Major Traffic Management Customer: Receives Design Wins with Immediate Revenue Potential of $1M/Year

  Silicom Secures Another Major Traffic Management Customer: Receives Design
  Wins with Immediate Revenue Potential of $1M/Year

- Talks Underway Regarding Additional Products May Ramp Sales To This Customer
                   Up to Several Million Dollars Per Year -

Business Wire

KFAR SAVA, Israel -- August 12, 2013

Silicom Ltd. (NASDAQ:SILC) (TASE:SILC) today announced that it has been
awarded two Design Wins from a new customer in the rapidly growing Traffic
Management and Policy Enforcement Industry. The Design Wins are for a
specialized internal BYPASS solution, a product that will replace another
solution currently provided by one of Silicom’s competitors, and for Silicom’s
unique external Intelligent BYPASS Switch (IBS).

Silicom expects the revenues from these Design Wins to reach approximately $1
million per year. In addition, the customer is currently discussing the use of
another, higher-end solution that could, if adopted, increase its business
with the Company significantly to a level of several million dollars per year.

“We are very pleased to have achieved these additional Design Wins within the
traffic management and policy enforcement industry, a market segment that
continues to experience exponential growth,” commented Shaike Orbach,
Silicom’s President and CEO. “Our success with this customer demonstrates that
all our product lines are relevant in contributing to our growth. It also
demonstrates the virtually bottomless nature of our markets – especially their
ability to continuously produce an ever-growing roster of significant new
customers, each of which offers an immediate new horizon of additional sales
opportunities that continues to grow over time.”

BYPASS solutions are used to assure the continued flow of network traffic if
its in-line appliances should experienced failure, and Silicom’s BYPASS
solutions help customers achieve the highest performance possible of these
mission critical applications. In addition, Silicom’s unique Intelligent
Bypass switch (IBS) is able to independently sense a failure and to initiate
the Bypass process, thereby facilitating an exceedingly simple integration of
an external BYPASS solution into the network.

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