FOR IMMEDIATE RELEASE

EARNINGS RELEASE

SECURITY MARKET GIANT RAMPS UP ITS
BUSINESS WITH SILICOM:
BECOMES MILLION-DOLLAR-A-YEAR
CUSTOMER FOR SILICOM’S 10GB FIBER
ADAPTER

        KFAR SAVA, Israel – November 16, 2009 – Silicom Ltd. (NASDAQ and TASE: SILC) today announced that an existing client, a dominant player in the global security industry, has ramped up its orders significantly over the past few months, reaching a rate of approximately one million dollars on an annualized basis.

        The increase in orders is due primarily to the customer’s selection of a customized version of Silicom’s high-performance 10 gigabit, fiber network interface card as its standard 10 Gigabit connectivity solution for its new firewall appliance.

        “The dramatic scale-up of our business with this market giant – especially through its selection of products in the 10 gigabit line – and its transformation into a million dollar customer is a milestone achievement with significant strategic as well as financial importance for our Company,” commented Shaike Orbach, Silicom’s President and CEO. “The financial significance is obvious – it boosts our current sales while giving us the potential for even more significant growth in the future. From a strategic point of view, the large-scale adoption of our 10 Gigabit product by such a high-profile market player confirms the 10Gbp opportunity, giving us incentive to focus on these advanced, high-margin product lines as a potential growth driver.”

        Mr. Orbach concluded, “We are very proud of our customer base of 50+ satisfied customers, many of whom adopt additional Silicom products over time. The fact that this customer is already considering the use of several additional other Silicom products is a clear indication that they are satisfied with the experience of working with our Company and with our technologies. This makes us optimistic that they will continue building their use of our products, helping us to achieve additional growth in the future.”