FOR IMMEDIATE RELEASE

EARNINGS RELEASE

SILICOM CHOSEN BY LEADING
MANUFACTURER OF APPLICATION
ACCELERATION APPLIANCES

– Initial Purchase Orders Received: Annual ‘Run Rate’ Expected to Reach ~$3M Per Year –

        KFAR SAVA, Israel – April 27, 2009 – Silicom Ltd. (NASDAQ and TASE: SILC) today announced that it has been selected by one of the world’s largest manufacturers of application acceleration solutions to supply multi-port cards for its appliances, and that, based on customer’s forecasts, it expects the volume of associated purchase orders to begin ramping up gradually to an annual level of $3 million.

        Silicom will deliver two types of multi-port gigabit Ethernet server adapters customized for deployment within the customer’s newest application acceleration appliances. All of the customer’s appliances of this model will include at least one of the Silicom cards as a standard, with an option for additional cards as well. Silicom has already received initial purchase orders amounting to approximately $ 150,000 for these cards.

        “We are excited to have achieved this strategic win with one of the application acceleration industry’s most important players,” said Shaike Orbach, Silicom’s President and CEO. “The rapid uptake of Web 2.0 and mobile applications has led to brisk demand for these critical solutions, as companies fight to contain spiraling server costs. In a market where maximum performance is the name of the game, we are particularly proud to have been chosen as a top-performer in our class.”

        Mr. Orbach continued, “The customer has led us to expect larger purchase orders over the medium-to-long term, and we hope to see significant purchase orders before the end of the year. In parallel, we are currently engaged in discussions regarding additional projects and specialized products for this customer, and hope to be able to increase the scope of our cooperation over time.”