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ACCESSION NUMBER:		0001094366-09-000015
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090504
FILED AS OF DATE:		20090504
DATE AS OF CHANGE:		20090504

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:		09791479

	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
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<FILENAME>f6kresults.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>Radware Ltd Announces Q2 07 Results</TITLE>
<META NAME="author" CONTENT="Radware">
<META NAME="date" CONTENT="05/04/2009">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>FORM 6-K</B></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>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Washington D.C. 20549</B></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>Report of Foreign Private Issuer</P>
<P style="margin:0pt; 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:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>The Securities Exchange Act of 1934</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">For the month of May, 2009</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Commission File Number: 0-30324</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>Radware Ltd.</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>(Translation of Registrant&#146;s Name into English)</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>22 Raoul Wallenberg Street, Tel Aviv 69710, Israel</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>(Address of Principal Executive Offices)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; 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:0pt; 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:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; 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:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; 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:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; 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:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Yes _______ No &nbsp;&nbsp;<U>X</U></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; 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>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CONTENTS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; 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:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">1.<B> </B>Press Release<B>: Radware Announces Q109 Results, </B>dated May 4, 2009.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SIGNATURES</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; 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>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; text-indent:226.8pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">RADWARE LTD.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Date: May 4, 2009</P>
<P style="margin:0pt; text-indent:226.8pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">By: /S/ Meir Moshe</P>
<P style="margin:0pt; text-indent:226.8pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Meir Moshe</P>
<P style="margin:0pt; text-indent:226.8pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</P>
<P style="margin:0pt; text-indent:252pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; text-indent:252pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>EXHIBIT INDEX</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Exhibit Number</P>
<P style="margin:0pt; text-indent:144pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Description of Exhibit</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:21pt; text-indent:-21pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>1.1</B></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:21pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B></B>Press Release:<B> Radware Announces Q109 Results, </B>dated<B> </B>May 4, 2009.</P>
<P style="margin:0pt; padding-left:21pt; text-indent:339pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>CONTACTS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:7pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Chief Financial Officer Radware Ltd.</P>
<P style="margin:0pt; font-family:Times New Roman">Meir Moshe, </P>
<P style="margin:0pt; font-family:Times New Roman">+ 972-3766-8610</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:5pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Corporate Communications</P>
<P style="margin:0pt; font-family:Times New Roman">Joyce Anne Shulman</P>
<P style="margin:0pt; font-family:Times New Roman">+1 201 785 3209</P>
<P style="margin:0pt; font-family:Times New Roman">joyceannes@radware.com</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=right><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>For Immediate Release</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>RADWARE LTD. ANNOUNCES Q109 RESULTS</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:20pt; font-family:Times New Roman; font-size:12pt" align=justify><B>* Quarterly revenues of $20.5 million</B></P>
<P style="margin:0pt; line-height:20pt; font-family:Times New Roman; font-size:12pt" align=justify><B>* GAAP loss per share $0.32, Non-GAAP loss per share $0.12</B></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman"><B>TEL AVIV, ISRAEL.; May 4, 2009</B> &#151; Radware (NASDAQ: RDWR), the leading provider of integrated application delivery solutions for business-smart networking, today reported quarterly revenues of $20.5 million for the first quarter of 2009. This represents a decrease of 8% compared with revenues of $22.2 million for the first quarter of 2008</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman">Net loss on a GAAP basis for the first quarter of 2009 was $6.1 million or $0.32 per diluted share, including $2.5 million of acquisition related expenses. Net loss for the first quarter of 2008 was $8.3 million or $0.42 per diluted share. </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman">Net loss on a Non-GAAP basis for the first quarter of 2009 was $2.2 million or $0.12 per diluted share, compared with a net loss of $6.3 million or $0.32 per diluted share in the first quarter of 2008. </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman">At the end of the first quarter of 2009, the company&#146;s overall cash position including cash, short-term and long-term bank deposits and marketable securities amounted to $114.1 million. </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman">On March 31<SUP>st</SUP>, 2009 Radware completed the acquisition of assets pertaining to Nortel&#146;s [TSX: NT, OTC: NRTLQ] Layer 4-7 Application Delivery Business for the amount of $18 million in cash. Included in the acquisition are Nortel&#146;s application delivery products, certain related intellectual property assets, fixed assets, inventory, other intangible assets, as well as service contracts and warranty obligations, in addition to a number of employees related to this business. </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman">&#147;This quarter we continued our progress towards profitability. That coupled with our continued technological leadership as evident by the recent awards from third parties and the acquisition of Nortel&#146;s Application Delivery business, has provided Radware with solid advancement towards a key leadership position in the market place,&#148; stated Roy Zisapel, CEO Radware. &#147;</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">During the quarter ended March 31, 2009, Radware released the following significant announcements:</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">Radware Receives INTERNET TELEPHONY&#174; Magazine&#146;s 11th Annual <BR>
Product of the Year Award </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">CMS customers benefit from Radware's cutting-edge technologies to guarantee critical business continuity</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">Radware Nominated for Network Computing Magazine's Load Balancing Product of the Year </FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">Radware DefensePro Security Solution Named as Finalist for Two Info Security Products Guide Awards</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">Radware Enables Mobile Service Providers to Control and Optimize Network and Service Deployments</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">Radware Enters into Agreement to Acquire Nortel&#146;s Layer 4-7 Application Delivery Business</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">Radware&#146;s New DefensePro Offers Customers Increased &#145;Immunity&#146; with over 12 Gbps to Fight Cybercrime and Next Generation Data Center Attacks</FONT></P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-18pt; font-family:Courier New">o</P>
<P style="margin:0pt; padding-left:36pt; font-family:Courier New"><FONT FACE="Times New Roman">Radware Completes Acquisition of Nortel&#146;s Layer 4-7 Application Delivery Business</FONT></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Company management will host a quarterly investor conference call at 8:45 AM EDT on May 4, 2009. The call will focus on financial results for the quarter ending March 31, 2009, and certain other matters related to the Company&#146;s business.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">The conference call will be webcast on May 4, 2009 at 8:45 AM EST in the &#147;listen only&#148; mode via the Internet at: http://www.radware.com/Company/InvestorRelations/default.aspx and will be available for replay during the next 30 days.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Please use the following dial-in numbers to participate in the first quarter 2009 call:<BR>
</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Participants in the US call</B>: Toll Free 1 800 230-1059</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>International participants call:</B> +1 612 332-0637</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><B>About Radware</B></P>
<P style="margin:0pt; font-family:Times New Roman">Radware (NASDAQ:RDWR), the global leader in integrated application delivery solutions, assures the full availability, maximum performance, and complete security of business-critical applications for more than 6,000 enterprises and carriers worldwide. With APSolute&#8482;, Radware&#8217;s comprehensive and award-winning suite of intelligent front end, access, and security products, companies in every industry can drive business productivity, improve profitability, and reduce IT operating and infrastructure costs by making their networks &#147;business smart&#148;. For more information, please visit www.radware.com. &nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:22pt; font-family:Times New Roman" align=center><B>###</B></P>
<P style="margin:0pt; font-family:Times New Roman"><B>Use of Non-GAAP Financial Information </B></P>
<P style="margin:0pt; font-family:Times New Roman">In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), Radware uses non-GAAP measures of net income and earnings per share, which are adjustments from results based on GAAP to exclude stock-based compensation expenses, in accordance with SFAS 123R, amortization of intangible assets and acquisition-related expenses. Radware&#146;s management believes the non-GAAP financial information provided in this release is useful to investors for the purpose of understanding and assessing Radware&#146;s ongoing operations. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release, to the most directly comparable GAAP financial measures, is included with the financial information contained in this press release. Management use
s both GAAP and non-GAAP information in evaluating and operating business internally and, as such, has determined that it is important to provide this information to investors.</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:22pt; font-family:Times New Roman" align=center>###</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">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 and Network Security industry, changes in demand for Application Switching and Network Security 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:0pt; padding-right:11pt; font-family:Arial; font-size:11pt" align=right><BR></P>
<P style="margin:0pt; padding-right:11pt; font-family:Arial; font-size:11pt" align=right><BR></P>
<TABLE cellspacing=0><TR><TD valign=top width=493.4 colspan=3><P style="margin:0pt; line-height:10pt; font-family:Humanst521 Lt BT; font-size:8pt" align=center><B>Condensed Consolidated Statements of Operations</B></P>
</TD></TR>
<TR><TD valign=top width=493.4 colspan=3><P style="margin:0pt; font-family:Arial" align=center><B>(U.S. Dollars in thousands, except share and per share data)</B></P>
</TD></TR>
<TR><TD valign=top width=276.067>&nbsp;</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><B><U>For the Three months ended March 31, 2008</U></B></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><B><U>For the Three months ended March 31, 2009</U></B></P>
</TD></TR>
<TR><TD valign=top width=276.067>&nbsp;</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=center>(Unaudited)</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=center>(Unaudited)</P>
</TD></TR>
<TR><TD valign=top width=276.067>&nbsp;</TD><TD valign=top width=113.4>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Revenues</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,165 </P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,495 </P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Cost of revenues</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,596 </U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,182 </U></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Gross profit</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,569 </U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,313 </U></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Operating expenses:</P>
</TD><TD valign=top width=113.4>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Research and development</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right>7,298</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>5,828</P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Selling and marketing</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17,260 </P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,944 </P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">General and administrative</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,417 </U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,539 </U></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Total operating expenses</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,975 </U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,311 </U></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Operating loss</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right>(9,406)</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>(5,998)</P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Financial income, net</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,303</U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97</U></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Loss before income taxes </P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right>(8,103)</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>(5,901)</P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Income taxes </P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(227) &nbsp;</U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(204) &nbsp;</U></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Net loss</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,330) &nbsp;</U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,105) &nbsp;</U></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial"><BR></P>
</TD><TD valign=top width=113.4>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; font-family:Arial">Basic and diluted net loss per share</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><B><U>&nbsp;$(0.42) </U></B></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><B><U>&nbsp;$(0.32) </U></B></P>
</TD></TR>
<TR><TD valign=top width=276.067><P style="margin:0pt; padding-left:7.1pt; text-indent:-7.1pt; font-family:Arial">Weighted average number of shares used to compute basic and diluted net loss per share</P>
</TD><TD valign=top width=113.4><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>19,701,258</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>18,906,493</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<TABLE cellspacing=0><TR><TD valign=top width=493.4 colspan=3><P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><B>Reconciliation of GAAP to Non-GAAP Financial Information</B></P>
</TD></TR>
<TR><TD valign=top width=493.4 colspan=3><P style="margin:0pt; font-family:Arial" align=center><B>(U.S. Dollars in thousands, except share and per share data)</B></P>
</TD></TR>
<TR><TD valign=top width=285.533>&nbsp;</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><B><U>For the Three months ended March 31, 2008</U></B></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><B><U>For the Three months ended March 31, 2009</U></B></P>
</TD></TR>
<TR><TD valign=top width=285.533>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">GAAP net loss</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,330) </U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,105) </U></P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Arial">Stock-based compensation expenses, included in: </P>
</TD><TD valign=top width=103.933>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD></TR>
<TR><A NAME="OLE_LINK1"></A><A NAME="OLE_LINK2"></A><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">Cost of revenues</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>29</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>21</P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">Research and development</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>409</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>297</P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">Selling and marketing</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>638</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>493</P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">General and administrative</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;668</U></P>
</TD><TD valign=top width=103.933><U><P style="margin:0pt; text-indent:59.95pt; font-family:Arial">493</U></P>
</TD></TR>
<TR><TD valign=top width=285.533>&nbsp;</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,744</U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,304</U></P>
</TD></TR>
<TR><A NAME="OLE_LINK3"></A><A NAME="OLE_LINK4"></A><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">Amortization of intangible assets included in:</P>
</TD><TD valign=top width=103.933>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">Cost of revenues</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>188</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>93</P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">Selling and marketing</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>39</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right>39</P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">Income taxes</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41</U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&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=285.533>&nbsp;</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;268</U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;132</U></P>
</TD></TR>
<TR><TD valign=top width=285.533>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD><TD valign=top width=103.933>&nbsp;</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial">Acquisition related expenses</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&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><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,485 &nbsp;</U></P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">Non-GAAP net loss</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,318)</U></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,184)</U></P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">Non-GAAP diluted net loss per share</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><B><U>&nbsp;$(0.32) </U></B></P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><B><U>&nbsp;$(0.12) </U></B></P>
</TD></TR>
<TR><TD valign=top width=285.533><P style="margin:0pt; padding-left:7.1pt; text-indent:-7.1pt; font-family:Arial"><BR></P>
<P style="margin:0pt; padding-left:7.1pt; text-indent:-7.1pt; font-family:Arial">Weighted average number of shares used to compute Non-GAAP diluted net loss per share</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>19,701,258</P>
</TD><TD valign=top width=103.933><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>18,906,493</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; padding-right:11pt; font-family:Arial; font-size:11pt" align=right><BR></P>
<P style="margin:0pt; padding-right:11pt; font-family:Arial; font-size:11pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<TABLE cellspacing=0><TR><TD valign=top width=103.2>&nbsp;</TD><TD valign=top width=432 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=432 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=103.2>&nbsp;</TD><TD valign=top width=432 colspan=5>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&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><B>December 31,</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>&nbsp;2008</B></P>
</TD><TD valign=top width=24>&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><B>March 31,</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>&nbsp;2009</B></P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>28,065</P>
</TD><TD valign=bottom width=24>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>28,756</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; font-family:Times New Roman">Available-for-sale marketable securities</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>60,731</P>
</TD><TD valign=bottom width=24>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>39,785</P>
</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>13,348</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>12,761</P>
</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>2,046</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>3,014</P>
</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>6,712</P>
</TD><TD valign=top width=24>&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>8,523</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&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>110,902</P>
</TD><TD valign=top width=24>&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>92,839</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Long-term investments</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=120>&nbsp;</TD><TD valign=bottom width=24>&nbsp;</TD><TD valign=bottom width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; font-family:Times New Roman">Available-for-sale marketable securities</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>45,112</P>
</TD><TD valign=bottom width=24>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>45,547</P>
</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>1,995</P>
</TD><TD valign=top width=24>&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>1,837</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&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>47,107</P>
</TD><TD valign=top width=24>&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>47,384</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>11,693</P>
</TD><TD valign=top width=24>&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>11,786</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; font-family:Times New Roman"><B>Other assets</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Goodwill and other intangible assets</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>15,762</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>43,831</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>185,464</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>195,840</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>4,646</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>4,501</P>
</TD></TR>
<TR><TD valign=top width=255.467 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 valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>23,964</P>
</TD><TD valign=bottom width=24>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>34,062</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>28,610</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>38,563</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; font-family:Times New Roman">Long-term liabilities</P>
</TD><TD valign=top width=15.733>&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>8,792</P>
</TD><TD valign=top width=24>&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>14,887</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>465</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>464</P>
</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>185,985</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>187,289</P>
</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>(873)</P>
</TD><TD valign=bottom width=24>&nbsp;</TD><TD valign=bottom width=120><P style="margin:0pt; font-family:Times New Roman" align=right>(1,517)</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Treasury stock, at cost</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>(17,619)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>(17,845)</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2><P style="margin:0pt; padding-left:9pt; text-indent:-9pt; font-family:Times New Roman">Accumulated deficit </P>
</TD><TD valign=top width=15.733>&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>(19,896)</P>
</TD><TD valign=top width=24>&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>(26,001)</P>
</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>148,062</P>
</TD><TD valign=top width=24>&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>142,390</P>
</TD></TR>
<TR><TD valign=top width=255.467 colspan=2>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120>&nbsp;</TD><TD valign=top width=24><P style="margin:0pt; font-family:Times New Roman" align=right>&nbsp;&nbsp;</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120>&nbsp;</TD></TR>
<TR><TD valign=top width=255.467 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=120><P style="margin:0pt; font-family:Times New Roman" align=right>185,464</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman" align=right>195,840</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; line-height:10pt; font-family:Times New Roman; font-size:8pt">(*) The allocation of the purchase price in relation with the acquisition of Nortel's Layer 4-7 Application Delivery Business, &nbsp;&nbsp;included in the balance sheet as of March 31, 2009, is based on preliminary valuation of the intangible assets acquired and liabilities assumed. </P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-right:11pt; font-family:Arial; font-size:11pt" align=right><BR></P>
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