16-June-2010

LEADING EUROPEAN SECURITY SOLUTION
MANUFACTURER CHOOSES SILICOM’S SETAC
IN HEAD-TO-HEAD COMPETITION OVER
HARDWARE APPLIANCES
  

- Strategic Win Confirms SETAC Concept and Business Model -
 

KFAR SAVA, Israel, June 16, 2010 -- Silicom Ltd. (NASDAQ and TASE: SILC), today announced that a leading European security solution company has selected Silicom’s SETAC SErver To Appliance Converter concept as the basis for its latest security appliance. Its choice was made after evaluating the SETAC approach in contrast to “standard” designs based on the use of hardware appliances. To date, the customer has placed orders for initial quantities, and expects to ramp up a flow of orders over time.

The customer is a network security vendor with a distribution channel of hundreds of partners in countries throughout the world. Among its products are innovative appliances used to protect users’ networks from all types of security threats. Through the use of the SETAC, the customer will be giving its new security appliance field re-configurability, flexibility and other desirable functions without sacrificing the use of a branded, highly-reliable and supportable basic platform.

To create a comprehensive appliance that meets the customer’s specification, Silicom will work with a system integrator, who will integrate Silicom’s SETAC units with a “server grade” motherboard and other system component. The model of working together with an integrator is in line with the strategy that Silicom originally envisioned for marketing and implementing the SETAC, confirming both the approach and the security industry’s need for the SETAC solution.

“We are very pleased to announce this important win and its positive implications for our competitive positioning,” commented Shaike Orbach, Silicom’s President and CEO. “This is actually the best-case scenario that we envisioned when we first launched the SETAC: a growing preference for our SETAC in head-to-head competitions with the competitions’ hardware appliances.

“This confirms the superiority of our SETAC concept as well as the growing SETAC awareness that is building in the marketplace. We feel that the SETAC momentum is beginning to build and are optimistic regarding its ability to make a significant contribution to our future growth.”

 

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