FOR IMMEDIATE RELEASE

SILICOM DELIVERS GIGABIT ETHERNET ADAPTERS FOR
INTEGRATION INTO CUTTING-EDGE SERVER CLUSTERS

— Awareness Of Silicom’s High Performance Server Adapters Continues to Build —

        KFAR SAVA, Israel – June 10, 2004 – Silicom Ltd. (NASDAQ:SILCF) today announced that it has delivered advanced Quad Gigabit Ethernet adapters valued at approximately $140,000 to a provider of high-performance cluster-based computing solutions. The customer will use Silicom’s adapters to improve server throughput and performance in its LINUX-based server cluster solution for a High Performance Computing application.

        Silicom’s Quad Port Gigabit Ethernet solution features four 1000/100/10 ports on a single high-performance card to extend the functionality of each PCI-X slot. Taking advantage of this feature, customers are able to use fewer and/or smaller servers to achieve a high-performance, fully-redundant solution, resulting in lower system cost and complexity. The card’s checksum and TCP segmentation offload capabilities contribute an additional performance boost, helping servers maximize throughput in data-heavy, high-traffic environments.

        “We are delighted that this Server Cluster innovator has chosen our Quad Gigabit adapters to push the envelope of their server performance,” said Shaike Orbach, Silicom’s President and CEO. “The order and its following delivery demonstrate the market traction that has begun to build for our high-performance server adapter solutions. We continue to feel increased interest in all our Gigabit Ethernet solutions as an effective way to increase the throughput and performance of many types of high-end computing applications. Encouraged by the growing number of design wins and initial orders for our new product line, we continue to believe that this line of products will become Silicom’s future growth driver.”