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<SEC-DOCUMENT>0001094366-05-000012.txt : 20051028
<SEC-HEADER>0001094366-05-000012.hdr.sgml : 20051028
<ACCEPTANCE-DATETIME>20051028064959
ACCESSION NUMBER:		0001094366-05-000012
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20051028
FILED AS OF DATE:		20051028
DATE AS OF CHANGE:		20051028

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RADWARE LTD
		CENTRAL INDEX KEY:			0001094366
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-30324
		FILM NUMBER:		051161352

	BUSINESS ADDRESS:	
		STREET 1:		22 RAOUL WALLENBERG STREET
		CITY:			TEL AVIV
		STATE:			L3
		ZIP:			69710

	MAIL ADDRESS:	
		STREET 1:		575 CORPORATE DR
		STREET 2:		LOBBY 2
		CITY:			MAHWAH
		STATE:			NJ
		ZIP:			07430
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>q320056k.htm
<TEXT>
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<TITLE>UNITED STATES</TITLE>
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<META NAME="date" CONTENT="10/28/2005">
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>FORM 6-K</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Washington D.C. 20549</B></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Report of Foreign Private Issuer</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Pursuant to Rule 13a-16 or 15d-16 Under</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>The Securities Exchange Act of 1934</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">For the month of October, 2005</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Commission File Number: 0-30324</P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Radware Ltd.</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>(Translation of Registrant&#146;s Name into English)</P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>22 Raoul Wallenberg Street, Tel Aviv 69710, Israel</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>(Address of Principal Executive Offices)</P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F: &nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Form 20-F &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>X</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F___</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): N/A</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): N/A</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: &nbsp;</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Yes _______ No &nbsp;&nbsp;<U>X</U></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">If &#147;Yes&#148; is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A</P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CONTENTS</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">This report on Form 6-K of Radware Ltd. consists of the following documents, which are attached hereto and incorporated by reference herein:</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">1. Press Release: <B>RADWARE LTD. &nbsp;ANNOUNCES THIRD QUARTER RESULTS,</B> Dated October 28, 2005.</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:226.8pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">RADWARE LTD.</P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:-14pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Date: October 28, 2005</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:226.8pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">By: _<U>/s/ Meir Moshe_________</U></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:252pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Meir Moshe</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:252pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Chief Financial Officer</P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>EXHIBIT INDEX</B></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:-14pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Exhibit Number</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:144pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Description of Exhibit</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:-14pt; padding-left:144pt; text-indent:-144pt; width:378.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">10.1</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:-14pt; padding-left:144pt; width:378.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Press Release: Radware Announces Third Quarter Results, </B>Dated October 28, 2005.</P>
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<P style="margin-top:5pt; margin-right:89.85pt; margin-bottom:6pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt"><B>EXHIBIT 10.1</B></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:16pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:18pt; font-family:Times New Roman; font-size:16pt" align=right><B>Dennis S. Dobson, Inc.</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>Dennis S. Dobson, CEO</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>Financial Public Relations</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:11pt; font-family:Humanst521 Lt BT; font-size:9pt"><B>1522 Mill Plain Road</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>Fairfield, CT &nbsp;06430</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; padding-top:3pt; padding-bottom:3pt; width:522.25pt; line-height:10pt; font-family:Humanst521 Lt BT; font-size:8pt; border-top:1.5pt solid #000000; border-bottom:1.5pt solid #000000" align=center><B>Global Financial Public Relations For Technology Companies</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:11pt; font-family:Humanst521 Lt BT; font-size:9pt" align=justify><B>Telephone 203-255-7902</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>Fax 203-255-7961</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>E-Mail Address-IR@radware.com</B></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:8pt" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B><U>FOR IMMEDIATE RELEASE</U></B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:-14pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Contact: &nbsp;</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:72pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Meir Moshe, Chief Financial Officer, Radware Ltd.</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:-14pt; text-indent:36pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:72pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>011-972-3766-8610</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; padding-left:36pt; padding-right:36pt; text-indent:36pt; width:450.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Dennis S. Dobson, for Radware Ltd.</B></P>
<B><P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:72pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(203) 255-7902</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>RADWARE LTD. &nbsp;ANNOUNCES THIRD QUARTER RESULTS</B></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt"><B>* Quarterly revenues of $19.0 million</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt"><B>* Quarterly profit of $1.6 million </B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt"><B></B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tel Aviv, Israel, October 28, 2005 &#151; Radware (Nasdaq: RDWR), the leading provider of intelligent integrated solutions for ensuring the fast, reliable and secure delivery of networked and Web-enabled applications over IP, today reported its results for the third quarter of 2005. Revenues totaled $19.0 million, an increase of 8% compared with revenues of $17.6 million for the third quarter of 2004 and an increase of 9% compared with revenues of $17.5 million for the second quarter of 2005. <BR>
</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt">Net income for the third quarter of 2005 was $1.6 million, compared with net income of $3.6 million in the third quarter of 2004 and net income of $1.0 million in the second quarter of 2005.<BR>
</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt" align=justify>Diluted net earnings per share for the third quarter of 2005 were $0.08, compared to $0.19 in the third quarter of 2004 and $0.05 in the second quarter of 2005.</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:0.4pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company continued to maintain a positive operational cash flow as in the last fifteen quarters. In the third quarter of 2005 the Company generated cash in the amount of $2.3 million. This led to a balance of $168.8 million in cash, short-term and long-term bank deposits and marketable securities. </P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:0.4pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company estimates that in the forth quarter of 2005 revenues will amount to $21 million and the diluted net earnings per share will be 11 cents.<BR>
</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:6pt; padding-right:0.4pt; width:521.85pt; line-height:20pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Our third quarter results are consistent with our expectation that our short term business fundamentals for the remainder of 2005 would improve and that we would continue leveraging our competitive advantages and grow revenues sequentially. This quarter we began seeing the impact of our new reseller programs in terms of more effective channel partners. Additionally, we continued closing significant repeat business with our installed customer base across all regions,&#148; said Roy Zisapel, President and CEO at Radware. &nbsp;</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:6pt; padding-right:18pt; width:504.25pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:6pt; padding-right:0.4pt; width:521.85pt; line-height:20pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to Zisapel, Q3 was also a pivotal quarter in terms of product introductions and marketing activities. &#147;We unveiled our next generation APSolute application delivery solution for application-smart networking. APSolute provides customers with a unified product family designed to address the full array of availability, performance and security challenges associated with assuring fast, reliable, secure delivery of applications over IP networks. We also introduced our next generation 3020 application switch platform which was designed to fully leverage the power of our new APSolute operating system, and satisfy the demanding performance, availability and connectivity needs of large enterprises and carriers. We are looking forward to seeing the results 
of focused marketing activities on demand generation and building APSolute brand recognition.&#148; </P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:4pt; padding-right:18pt; width:504.25pt; font-family:Times New Roman; font-size:8pt" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<TABLE style="margin-right:89.85pt" cellspacing=0><TR><TD width=585.467><P style="margin:0pt; line-height:17pt; font-family:Times New Roman"><B>During the quarter ended September 30, 2005, Radware released the following significant announcements:</B></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Radware to Host Partner Forum 2005 in Miami, October 6-9</FONT></P>
<P style="margin:0pt; text-indent:6pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Telcom Carriers Worldwide Tap Radware to Safeguard Networks Against Botnet and Denial of Service Attacks</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Radware Announces Defense Pro 3020 - Extending the Performance and High Availability Capabilities of its Intrusion Prevention and DoS Protection Switches</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Radware Makes Campus Networks &quot;Application-Smart&quot; for 100,000 Students Back In School Around the World</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Radware Appoints Chief Marketing Officer to Drive Company's Market Focus</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Concordia University Selects Radware's Application Delivery Solution to Enhance Security, Performance and Reliability of its Networked Applications</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Radware Introduces Layer 4-7 VoIP Support for Enterprises and Carriers</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Radware Provides 10Gig IPS to Bolster Security, Reliability and Performance of Campus-wide Network for Top Korean University</FONT></P>
<P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol">&#8226;</P>
<P style="margin:0pt; padding-left:36pt; font-family:Symbol"><FONT FACE="Times New Roman">Radware Honored with the prestigious &quot;Tomorrow's Technology Today - 2005&quot; Award by Info Security Products Guide</FONT></P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman" align=right><BR></P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt" align=justify>Company management will host a quarterly investor conference call at 8:45 AM EDT on October 28, 2005. The call will focus on financial results for the quarter ended September 30, 2005, and certain other matters related to the Company&#146;s business.</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt" align=justify>The conference call will be webcast on October 28, 2005 at 8:45 AM EDT in the &#147;listen only&#148; mode via the Internet at:</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><FONT COLOR=#0000FF><U>http://www.radware.com/content/company/investorrelations/default.asp</U></FONT></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=center>&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Alternatively, the conference can be listened to by calling the following numbers:</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Participants in the US: TOLL FREE, 1-866-205-3921</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Participants internationally: 1-651-291-0618</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>About Radware</B></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; line-height:20pt; font-family:Times New Roman; font-size:12pt" align=justify>Radware (NASDAQ:RDWR) is the global leader in integrated application delivery solutions, assuring the full availability, maximum performance and complete security of all business critical networked applications while dramatically cutting operating and scaling costs. Over 3,000 enterprises and carriers worldwide use Radware application-smart switches to drive business productivity and improve profitability by adding critical application intelligence to their IP infrastructure, making networks more responsive to specific business processes. Radware's APSolute product family provides the most complete set of application front-end, remote access and security capabilities for application-smart networking to ensure faster, more reliable and secure business transactions. Learn more on how Radware application delivery solutions can enable yo
u to get the most of your investments in IT infrastructure and people. www.radware.com.</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; font-family:Humanst521 Lt BT; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; text-indent:36pt; width:522.25pt; line-height:26pt; font-family:Humanst521 Lt BT; font-size:12pt" align=center><B>###</B></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman">This press release may contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the Application Switching industry, changes in demand for Application Switching products, the timing and amount or cancellation of orders and other risks detailed from time to time in Radware's filings with the Securities and Exchange Commission, including Radware's Form 20-F.</P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman"><BR></P>
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<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<TABLE style="margin-right:89.85pt" cellspacing=0><TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=408 colspan=5><P style="margin:0pt; font-family:Times New Roman" align=center><B>Condensed Consolidated Balance Sheets</B></P>
</TD></TR>
<TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=408 colspan=5><P style="margin:0pt; font-family:Times New Roman" align=center><B>(U.S. Dollars in Thousands)</B></P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>December 31, 2004</B></P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>September 30,</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>&nbsp;2005</B></P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=center>(Audited)</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=center>(Unaudited)</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Current assets</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Cash and cash equivalents </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>8,792</P>
</TD><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>58,250</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Short-term bank deposits</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>64,892</P>
</TD><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>10,098</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Short-term marketable securities</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>35,336</P>
</TD><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>52,397</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Trade receivables, net</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>13,166</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>14,402</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Other receivables and prepaid expenses</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>1,332</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>2,413</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Inventories</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>4,094</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>4,637</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>127,612</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>142,197</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Humanst521 Lt BT; font-size:12pt"><B><U>Long-term investments</U></B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=116.267>&nbsp;</TD><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Long-term bank deposits</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>9,224</P>
</TD><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>9,522</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Long-term marketable securities</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>38,797</P>
</TD><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>38,484</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Severance pay funds</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>1,921</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>2,022</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>49,942</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>50,028</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Property and equipment, net</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>4,452</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>5,709</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Other assets, net</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>1,235</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>1,338</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Total assets</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>183,241</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>199,272</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Current liabilities</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Trade payables</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>5,075</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>4,719</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Deferred revenues, other payables and accrued expenses</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>14,850</P>
</TD><TD valign=bottom width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>18,180</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>19,925</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>22,899</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Accrued severance pay</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>2,399</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>2,527</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Total liabilities</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>22,324</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>25,426</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Shareholders&#146; equity</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267>&nbsp;</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Share capital</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>457</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>468</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Additional paid-in capital</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>145,439</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>151,694</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Accumulated other comprehensive loss</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>(52)</P>
</TD><TD valign=bottom width=36>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>(335)</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Deferred stock compensation</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>-</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>(44)</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Retained earnings </P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>15,073</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>22,063</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; font-family:Times New Roman">Total shareholders&#146; equity</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right>160,917</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>173,846</P>
</TD></TR>
<TR><TD valign=top width=223.2 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Total liabilities and shareholders' equity</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=116.267><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>183,241</P>
</TD><TD valign=top width=36>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>199,272</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman" align=right><BR></P>
<TABLE style="margin-right:89.85pt" cellspacing=0><TR><TD valign=top width=691.133 colspan=7><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Condensed Consolidated Statements Of Operations</B></P>
</TD></TR>
<TR><TD valign=top width=691.133 colspan=7><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>(U.S. Dollars In thousands, except share and per share data)</B></P>
</TD></TR>
<TR><TD valign=top width=181.6 colspan=2>&nbsp;</TD><TD valign=top width=81.733>&nbsp;</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B><U>For the Three months ended September 30, 2004</U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B><U>For the Three months ended &nbsp;September 30, 2005</U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B><U>For the Nine months ended &nbsp;September 30, 2004</U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B><U>For the &nbsp;Nine months ended &nbsp;September 30, 2005</U></B></P>
</TD></TR>
<TR><TD valign=top width=181.6 colspan=2>&nbsp;</TD><TD valign=top width=81.733>&nbsp;</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=center>(Unaudited)</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=center>(Unaudited)</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=center>(Unaudited)</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=center>(Unaudited)</P>
</TD></TR>
<TR><TD valign=top width=181.6 colspan=2>&nbsp;</TD><TD valign=top width=81.733>&nbsp;</TD><TD valign=top width=106.6>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Revenues</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,572 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,018 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>49,392 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>56,546 </P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Cost of revenues</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,130 </U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,797 </U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,789 </U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,843 </U></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Gross profit</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,442 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,221 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,603</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,703</P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Operating expenses:</P>
</TD><TD valign=top width=106.6>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Research and development</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>2,660</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>3,298</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>7,464 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>9,655 </P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Sales and marketing</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,989 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,279 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,496 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,892 </P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">General and administrative</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,192 </U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,316 </U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,250 </U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,873 </U></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Total operating expenses</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,841 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,893 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,210 </P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42,420 </P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Operating income</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,601</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>328</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>6,393</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>3,283</P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Financial income, net</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,137</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,300</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,212</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,817</U></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Income before income taxes </P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>3,738</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>1,628</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>9,605</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>7,100</P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Income taxes</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;206</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110</U></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Income before minority interest in losses of a &nbsp;&nbsp;subsidiary</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right>3,625</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>1,589</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>9,399</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right>6,990</P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; padding-left:7.1pt; text-indent:-7.1pt; font-family:Times New Roman">Minority interest in losses of a subsidiary</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</U></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Net income </P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,625</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,589</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,433</U></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,990</U></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman"><BR></P>
</TD><TD valign=top width=106.6>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Basic net earnings per share</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.20 </U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.08 </U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.53 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.37 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></B></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; padding-left:7.1pt; text-indent:-7.1pt; font-family:Times New Roman">Weighted average number of shares used to compute basic net earnings per share</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>18,055,063 &nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>18,920,493 &nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>17,912,380</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>18,731,111</P>
</TD></TR>
<TR><TD valign=top width=144.2><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
</TD><TD valign=top width=119.133 colspan=2>&nbsp;</TD><TD valign=top width=106.6>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD><TD valign=top width=107.067>&nbsp;</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin:0pt; font-family:Times New Roman">Diluted net earnings per share</P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.19 </U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.08</U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48 </U></B></P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><B><U>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.35 </U></B></P>
</TD></TR>
<TR><TD valign=top width=263.333 colspan=3><P style="margin-top:5pt; margin-bottom:6pt; line-height:20pt; font-family:Times New Roman; font-size:12pt">Weighted average number of shares used to compute diluted net earnings per share</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
</TD><TD valign=top width=106.6><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>19,399,481 &nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>19,814,061 &nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>19,684,063</P>
</TD><TD valign=top width=107.067><P style="margin:0pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=right>20,118,693</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:89.85pt; margin-bottom:0pt; width:522.25pt; font-family:Times New Roman"><BR></P>
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