February 04, 2008 at 07:23 AM EST
Silicom Enters China: Receives $1.8M Order from Leading Chinese Server Company

Silicom Ltd. (NASDAQ:SILC)(TASE:SILC) today reported that it has received a $1.8 million order from one of Chinas largest domestic server companies, representing its first significant penetration into the vast Chinese market. The order is for production quantities of Silicoms advanced fiber multi-port Gigabit Ethernet adapters scheduled for delivery during the first quarter.

We are excited to achieve this significant initial penetration of the strategic Chinese market, commented Shaike Orbach, Silicoms President and CEO. Chinas rapid growth represents a huge new opportunity for Silicom, especially the fact that its server usage is growing in step with the phenomenal development of its telecom, transportation, banking and other sectors. In fact, according to CCID Consulting, more than half a million x86 servers were sold in China in 2007, with additional strong growth projected for 2008.

As such, this first order from a major Chinese server vendor is a significant milestone for us. Beyond its potential to generate repeat orders over time, this order demonstrates our ability to achieve significant sales in China, paving the way for success with the markets many additional vendors. As such, we believe the Chinese server market could become a strong new driver of our long-term growth.

About Silicom

Silicom Ltd. is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, WAN Optimization and security appliances and other mission-critical gateway applications. 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.

Contacts:

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