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<SEC-DOCUMENT>0001178913-07-001158.txt : 20070607
<SEC-HEADER>0001178913-07-001158.hdr.sgml : 20070607
<ACCEPTANCE-DATETIME>20070607122626
ACCESSION NUMBER:		0001178913-07-001158
CONFORMED SUBMISSION TYPE:	F-3
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20070607
DATE AS OF CHANGE:		20070607

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SILICOM LTD
		CENTRAL INDEX KEY:			0000916793
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		F-3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-143565
		FILM NUMBER:		07906078

	BUSINESS ADDRESS:	
		STREET 1:		08 HANAGAR ST
		CITY:			KFAR-SAVA ISRAEL
		STATE:			L3
		ZIP:			44000
		BUSINESS PHONE:		97297644555

	MAIL ADDRESS:	
		STREET 1:		P.O.BOX 2164
		CITY:			KFAR-SAVA
		STATE:			L3
		ZIP:			44000
</SEC-HEADER>
<DOCUMENT>
<TYPE>F-3
<SEQUENCE>1
<FILENAME>zk73856.htm
<TEXT>
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     <!-- Control Number: 73856                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Silicom Ltd                                                      -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
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     <Td Align="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>As filed with the Securities and Exchange Commission on June 7, 2007</B> &nbsp;&nbsp;&nbsp;Registration No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT> </td>
</tr>
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     <td><Hr Align=LEFT Width=100% Size=4 Noshade Style="margin-top: -5px"><hr Align=LEFT Width=100% Size=1 Noshade Style="margin-top: -10px"></td></tr>
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<Br>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">UNITED STATES </FONT><Br>
<FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>SECURITIES AND EXCHANGE COMMISSION</B> </FONT><Br>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">WASHINGTON, D.C. 20549 </FONT></P>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>FORM F-3</B> </FONT></P>



<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION STATEMENT
<Br>UNDER
<Br>THE SECURITIES ACT OF 1933
</FONT></P>

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<p Align=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="5"><B>SILICOM LTD.</B> </FONT> <Br>
<Font Face="Times New Roman, Times, Serif" Size=2>(Exact name of Registrant as specified in its charter) </font></p>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>Israel</B> </FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>Not Applicable</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(State or other jurisdiction of incorporation or organization)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(I.R.S. Employer Identification No.)</FONT></TD></TR>
</TABLE><Br>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8 Hanagar Street
<Br>Kfar Sava, Israel, 44000
<Br>972-9-764-4555
<Br>(Address and telephone number of Registrant's principal executive offices)
<Br>
<Br>Silicom Connectivity Solutions, Inc.
<Br>6 Forest Avenue Paramus
<Br>New Jersey, USA, 07652
<Br>Tel: 201-843-1175
<Br>Facsimile: 201-843-1457
<Br>(Name, address and telephone number of agent for service)
<Br>
<Br>Copies of all Correspondence to:
<Br><B>DAVID H. SCHAPIRO, ESQ.
</B><Br>Yigal Arnon &amp; Co.
<Br>1 Azrieli Center
<Br>Tel Aviv, 67021 Israel
<Br>Tel: 972-3-608-7856 </FONT>
</P>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>Approximate date of commencement of
proposed sale to the public<B>: </b>From time to time after the effective date of this
registration statement. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>If the only securities being
registered on this form are being offered pursuant to dividend or interest reinvestment
plans, please check the following box: <FONT size="3" face="Wingdings">o
</font></font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>If any of the securities being
registered on this form are to be offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act of 1933, please check the following box: <FONT size="3" face="Wingdings">x
</font> </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>If this form is filed to register
additional securities for an offering pursuant to Rule 462(b) under the Securities Act,
please check the following box and list the Securities Act registration statement number
of the earlier effective registration statement for the same offering. <FONT size="3" face="Wingdings">o
</font></font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>If this form is a post-effective
amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box
and list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. <FONT size="3" face="Wingdings">o
</font></font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>If this form is a registration
statement pursuant to General Instruction I.C. or a post effective amendment thereto that
shall become effective upon filing with the Commission pursuant to Rule 462(e) under the
Securities Act, check the following box. <FONT size="3" face="Wingdings">o
</font></font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>If this form is a post-effective
amendment to a registration statement filed pursuant to General Instruction I.C. filed to
register additional securities or additional classes of securities pursuant to Rule 413(b)
under the Securities Act, check the following box. <FONT size="3" face="Wingdings">o
</font></font></p>

<p align=center>
<font size=2></font></p>
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<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Calculation of Registration Fee</B> </FONT></P>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>Title of Each Class of<BR>
Securities to be Registered</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Amount to be Registered</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Proposed Maximum Aggregate<BR>
Price Per Security</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Proposed Maximum<BR>
Aggregate Offering Price</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Amount of <Br>Registration Fee</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Ordinary Shares, par value NIS 0.01 per share (1)</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>1,104,687</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>$23.85(2)</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>$26,346,784</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>$808.85</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>$808.85</FONT></TD></TR>
</TABLE><Br>




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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(1)  </font></td>
<td Width=95%><Font Face="Times New Roman, Times, Serif" Size=2>Represents
(i) 875,000 ordinary shares of the Registrant presently outstanding           and (ii)
229,687 ordinary shares issuable upon exercise of the Registrant&#146;s
          Warrants. Pursuant to Rule 416 of the Securities Act of 1933, this registration
          statement also includes an indeterminate number of shares that may be issued to
          prevent dilution from stock splits, stock dividends or similar transactions
that           could affect the shares to be offered by selling stockholders. </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(2)  </font></td>
<td Width=95%><Font Face="Times New Roman, Times, Serif" Size=2>Estimated
solely for the purpose of calculating the registration fee pursuant to           Rule
457(c) of the Securities Act of 1933 on the basis of the average of the           high
and low prices, as reported on the Nasdaq Capital Market on June 4, 2007. </font></td>
</tr>
</table>
<br>

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<P><Font Face="Times New Roman, Times, Serif" Size=2><B>The Registrant hereby amends this
Registration Statement on such date or dates as may be necessary to delay its effective
date until the Registrant shall file a further amendment which specifically states that
this Registration Statement shall thereafter become effective in accordance with Section
8(a) of the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a), may
determine.</b> </font></p>

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<font size=2></font></p>
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<P><Font Face="Times New Roman, Times, Serif" Size=2><B>The information in this
preliminary prospectus is not complete and may be changed. These securities may not be
sold until the registration statement filed with the Securities and Exchange Commission is
effective. This preliminary prospectus is not an offer to sell nor does it seek an offer
to buy these securities in any jurisdiction where the offer or sale is not permitted.</b> </font></p>


<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>SUBJECT TO COMPLETION
<Br>DATED ____ __, 2007</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>PROSPECTUS </font></h1>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><Img Src="logo.gif"></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>1,104,687 Ordinary
Shares </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus relates to the resale, from time to time, by the selling stockholders named in
this prospectus of up to 1,104,687 ordinary shares, including 229,687 ordinary shares
issuable upon exercise of outstanding warrants held by the selling stockholders. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders may sell all or any portion of these ordinary shares in one or more
transactions through (i) Nasdaq, the Tel Aviv Stock Exchange, in the over-the-counter
market, in privately negotiated transactions or otherwise; (ii) directly to purchasers or
through agents, brokers, dealers or underwriters; (iii) at market prices prevailing at the
time of sale, at prices related to such prevailing market prices, or at negotiated prices;
or (iv) or any other means described in the section entitled &#147;Plan of
Distribution.&#148; </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
ordinary shares are listed on the NASDAQ Capital Market under the symbol &#147;SILC&#148;
and on the Tel Aviv Stock Exchange in Israel under the symbol &#147;SILC.&#148; On June 5,
2007, the last reported sale price of our ordinary shares on the NASDAQ Capital Market was
$22.43 per share and on the Tel Aviv Stock Exchange was NIS 96.93 per share. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The
securities offered hereby involve a high degree of risk. See &#147;Risk Factors&#148;
beginning on page 2.</b> </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>None
of the U.S. Securities and Exchange Commission, the Israeli Securities Authority or any
state securities commission have approved or disapproved of these securities or passed
upon the adequacy, completeness or accuracy of this prospectus. Any representation to the
contrary is a criminal offense under the laws of the United States and the laws of the
State of Israel.</b> </font></p>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The date of this prospectus is ________, 2007</FONT></P>


<p align=center>
<font size=2></font></p>
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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>TABLE OF CONTENTS </font></h1>




<TABLE CELLPADDING=2 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=98% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk101">ABOUT SILICOM LTD</a></FONT></TD>
     <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk102">THE OFFERING</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk103">RISK FACTORS</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk104">SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk105">CAPITALIZATION</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk106">USE OF PROCEEDS</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk107">MARKET PRICE DATA</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk108">PLAN OF DISTRIBUTION</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk109">SELLING STOCKHOLDERS</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk110">FOREIGN EXCHANGE CONTROLS AND OTHER LIMITATIONS</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>26&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk111">LEGAL MATTERS</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>26&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk112">EXPERTS</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk113">ENFORCEABILITY OF CIVIL LIABILITIES AND AGENT FOR SERVICE OF PROCESS IN THE UNITED STATES</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><a href="#zk114">WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION OF INFORMATION BY REFERENCE</a></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD></TR>
</TABLE>
<Br>

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<font size=2></font></p>
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<a name=zk101></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>ABOUT SILICOM LTD. </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are engaged in the design, manufacture, marketing and support of connectivity solutions
for a broad range of servers and server based systems. We design, manufacture, market and
support server networking solutions for manufacturers of security appliances, WAN (Wide
Area Network) optimization appliances, internet traffic management systems, storage
systems, and other manufacturers providing a variety of server-based systems. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
were incorporated under the laws of Israel in 1987. Our first products were integrated
circuits for information technology, or IT, manufacturers. In the early 1990s, we began
focusing our strategy on designing, manufacturing, marketing and supporting a range of
connectivity solutions for mobile and personal computers, or PC, users. In subsequent
years we developed several Broadband Internet related products. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2002, we leveraged our expertise and know-how in networking and operating systems to
develop a line of high-end multi-port server networking cards. In November and December of
2003, we secured our first design wins for these new products. Since that time, we have
identified the server-based network appliances market and specifically the server-based
security appliances and WAN (Wide Area Network) optimization appliances within such market
as demonstrating a strong demand for our products. We have added to our product lines
networking products which include special functionalities called Bypass Adapters for the
server based appliances. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over
the last few years, our sales and marketing has been carried out through a network of
strategic relationships with leading original equipment manufacturers which sell our
products, generally as a part of their systems and sometimes under their own private
labels. Our current original equipment manufacturer customers are mostly active in the
security appliances market, WAN optimization market, other network appliances markets
(such as load balancing and traffic management), storage market, general servers market
and other server based applications. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
manufacturing operations consist primarily of producing finished goods from components and
sub-assemblies purchased from third parties. In addition, we perform testing and quality
assurance procedures with respect to the components and sub-assemblies which are
incorporated into our final products and the final products themselves. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
registered and principal executive offices are located in Israel at 8 Hanagar Street, Kfar
Sava, Israel 44000, and our telephone number is 972-9-764-4555. Our website is
http://www.silicom.co.il. Information on our website is not incorporated by reference in
this prospectus. </font></p>

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<font size=2>1</font></p>
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<a name=zk102></a>

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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>THE OFFERING </font></h1>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <Td Width="50%" Align="Left" Valign="Top"><FONT FACE="Times New Roman" SIZE=2>Securities offered by the selling stockholders</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1,104,687</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT Valign="Top"><FONT FACE="Times New Roman" SIZE=2>NASDAQ Capital Market Symbol</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>SILC</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT Valign="Top"><FONT FACE="Times New Roman" SIZE=2>Use of Proceeds</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>We will not receive any proceeds from the sale of the ordinary shares offered hereby.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT Valign="Top"><FONT FACE="Times New Roman" SIZE=2>Ordinary shares outstanding as of May 28, 2007</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>6,473,998</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT Valign="Top"><FONT FACE="Times New Roman" SIZE=2>Risk Factors</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>An investment in our securities involves a high degree of risk and could involve a loss of your entire investment. Prospective investors should carefully consider the information in this prospectus, including the Risk Factors beginning on Page 2, before buying the ordinary shares offered hereby.</FONT></TD></TR>
</TABLE>
<Br>

<a name=zk103></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>RISK FACTORS </font></h1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>An
investment in our securities is speculative and involves a high degree of risk. Therefore,
you should not invest in our securities unless you are able to bear a loss of your entire
investment. You should carefully consider the following factors as well as the other
information contained in this prospectus before deciding to invest in our securities. This
prospectus and statements that we may make from time to time may contain forward-looking
information. There can be no assurance that actual results will not differ materially from
our expectations, statements or projections. Factors that could cause actual results to
differ from our expectations, statements or projections include the risks and
uncertainties relating to our business described below. The information in this prospectus
is complete and accurate as of this date, but the information may change after the date of
this prospectus.</i> </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>We depend on one line of
products for most of our revenues.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Our current business is based almost
in its entirety on our Multi Port Gigabit-Ethernet Server Adapter product line and the
majority of our revenue is generated from such product line. We expect that in the
foreseeable future we will continue to be dependent on this line of products for most of
our revenue due the nature of our business. We also sell legacy products, however, the
volume of sales of legacy products and the revenues generated from such sales is very low
and is diminishing. Although we sold legacy products throughout 2006 and in the first
months of 2007, we believe that the contribution of such products to our revenues in the
foreseeable future will be negligible. We cannot assure you that revenue generated from
our Multi Port Gigabit-Ethernet Server Adapters will reach or exceed historical levels in
any future period. A decrease in the price of, or demand for, any of these products, or a
significant increase in our costs of manufacturing them could have a material adverse
affect on our business, results of operations and financial condition. </font></p>

<p align=center>
<font size=2>2</font></p>
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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Increased demand for
products with characteristics similar to our products may cause manufacturers to integrate
such characteristics into server motherboards, eliminating the need for our add-on
products.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Our main products are add-on adapters
that are added to existing servers in order to improve their functionality. If demand for
such improved functionality increases significantly, server manufacturers may begin
incorporating such functionality as a part of the basic design of their servers, whereby
eliminating the need to achieve such functionality through add-on adapters. In the past we
suffered from a similar trend with respect to our legacy products. We cannot assure you
that a similar trend will not occur in connection with our add-on adapters. Such trend
would have a material adverse effect on our business, results of operations and financial
condition. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>We may experience
difficulty in developing solutions for appliances with proprietary interfaces which may
be used by some of our potential customers.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>The market for networking appliances
includes appliances that make use of proprietary interfaces. These appliances are offered
to our potential customers in addition to the customary server-based appliances which use
standard interfaces. Our potential customers may decide to use appliances with proprietary
interfaces instead of the customary server-based appliances for which several
manufacturers may provide add-on cards. There could be no assurance that we would be able
to develop non-standard add-on cards for appliances with proprietary interfaces or, if we
are successful in developing such cards, that manufacturers of the proprietary interfaces
or the customers electing to use these interfaces will make use of our cards in such
non-standard environments. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Our Multi Port
Gigabit-Ethernet Server Networking Adapters including our Bypass Adapters which are sold mainly to OEMs, are
characterized by long sales cycles.</I></B> </FONT> </p>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>We sell our Multi Port
Gigabit-Ethernet Server Networking Adapters (including our Bypass Adapters) mainly to
original equipment manufacturers, or OEMs. The decision making process of our OEM
customers includes several time consuming processes, resulting from the critical
importance of our products in their systems: They need to define the required
configuration of their server system/appliance, derive the need and type of adapters,
evaluate adapters, intensively test and qualify adapters and then (or in parallel)
negotiate the terms for a purchase. It may therefore take 12 months or more from the time
we first contact a prospective customer before such customer implements our cards in its
system constituting what is known as a Design Win. Additionally, once a Design Win is
secured, our sales of these products typically involve significant capital investment
decisions by prospective end customers, as well as a significant amount of time to educate
such end customers as to the benefits of systems and appliances that include our products.
As a result, before purchasing systems and appliances which include our products (and
consequently facilitating sales of our products), companies spend a substantial amount of
time performing internal reviews and obtaining capital expenditure approvals, consequently
lengthening the period of time required for a Design Win to mature into consistent sales.
These long sales cycles make it difficult to predict when and to what extent discussions
with potential customers will materialize into sales and could cause our revenue and
operating results to fluctuate widely from period to period. In addition, our allocation
of significant resources to potential sales opportunities that do not materialize into
sales could have a material adverse affect on our business, results of operations and
financial condition. </font></p>

<p align=center>
<font size=2>3</font></p>
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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>The short lead time of
customer orders combined with the long lead time of our suppliers when ordering certain
components for our products could result in either a surplus or lack of sufficient
supplies, and impact negatively on our finances.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>While we are generally required to
fill orders for our products within one or two weeks following the receipt of a firm
purchase order, we must place orders of certain components for our products between
sixteen and twenty weeks prior to delivery. As a result, we must have a significant amount
of components in our inventory to be able to meet our best forecasts of projected purchase
orders as opposed to on the basis of firm purchase orders. In the event that firm purchase
orders are significantly lower than such forecasts, a significant part of our inventory
will not be used and we may be unable to adjust costs in a timely manner to compensate for
revenue shortfalls and in the event that firm purchase orders exceed such forecasts, we
will not be able to fill such purchase orders which may lead to the loss of business from
a customer. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Our visibility of future
sales is severely limited due to the short lead time of customer orders.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>As a result of the short lead time
for firm purchase orders, we are unable to accurately forecast future revenues from
product sales. As a result, even dramatic fluctuation in revenue (whether increase or
decrease) might not be detected until the very end of a financial quarter, which may not
enable us to monitor costs in a timely manner to compensate for such fluctuation. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>The loss or
ineffectiveness of our original equipment manufacturers or a reduction of purchase orders
or sales efforts by such original equipment manufacturers may have a material adverse
effect on our operations and financial results.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Our sales and marketing strategy is
to develop and maintain strategic relationships with leading OEMs in the Servers industry
and Server based systems industry, which integrate our products into their systems. These
OEMs are not within our control, are not obligated to purchase our products, and may
select other products that may compete with our lines of products. A reduction in their
sales efforts or discontinuance of sales of our products by our OEMs could lead to reduced
sales and could materially adversely affect our operating results. Use of OEMs also
entails the risk that they will build up inventories in anticipation of a growth in sales.
If such growth does not occur as anticipated, such OEMs may substantially decrease the
amount of products ordered in subsequent quarters or discontinue product orders. The
termination or loss of one of our key OEMs or several OEMs at approximately the same time,
without being able to compensate this loss with sales to other new OEM customers might
have a material adverse effect. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Our OEM customers may
replace the appliances they currently use with appliances that do not require our cards
or incorporate cards other than ours.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Many of the OEMs that use appliances
which include our cards do so for a few years, and then consider migration to newer
generations of appliances. We cannot guarantee that our cards will be needed or selected
for such new appliances or compatible with them. A decision by a current OEM customer or
customers to select a new appliance without including our cards in such new appliance may
have a significant adverse effect on our results of operations. </font></p>

<p align=center>
<font size=2>4</font></p>
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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>The markets for our
products change rapidly and demand for new products is difficult to predict.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>The markets for our products are
characterized by rapidly changing technology and evolving industry standards. For example,
the migration to 10Gbps solutions, the European Union&#146;s directive regarding
Restriction Of Hazardous Substances (ROHS) which requires products to be ROHS compliant,
the Chinese ROHS directive and the migration from the PCI-X server bus to the PCI-Express
(PCI-E) server bus, causes our OEMs to demand such new products and technologies. In the
event that our OEMs decide to begin using such new technologies, we may not be able to
develop products for the new technologies in a timely manner. Our OEMs may also select
competing products despite our ability to develop products incorporating new technologies.
Furthermore, the migration to 10Gbps, while presenting an opportunity for more cards and
solutions to be sold, may also result in a decrease in the need for multi port cards as
throughput performance may be achieved via a single port of 10Gbps. Consequently, we may
suffer from reduced sales to such OEMs and accumulate unusable inventory which can be used
only with older technologies. We intend to continue investing in product and technology
development. Although we have recorded growing sales of our newest lines of products (to
which the majority of our revenues are attributable), there can be no assurance that we
will continue to be successful in the marketing of our current products and in developing,
manufacturing and marketing enhanced and new products in a timely manner. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>We may experience
difficulty in developing new, commercially successful products at acceptable release times.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2> </font></p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Since we commenced operations, we
have conducted extensive research, development and engineering activities. Our efforts
emphasize the development of new products, cost reduction of current products, and the
enhancement of existing products, generally in response to rapidly changing customer
preferences, technologies and industry standards. Although throughout 2004, 2005, 2006,
and the first months of 2007 we recorded growing sales of our latest lines of products,
Multi Port Gigabit-Ethernet Server Networking Adapters and Bypass Adapters, we cannot
guarantee the continued success of these products, that they will be widely accepted by
the marketplace or that any of our development efforts will result in commercially
successful products, that such products will be released in a timely manner or that we
will be able to respond effectively to technological changes or new product announcements
by others. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Loss of our sources for
certain key components could harm our operations.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Although we generally use standard
parts and components for our products, certain key components used in our products are
currently available from only one source, and others are available from a limited number
of sources. We believe that we maintain a sufficient inventory of these components to
protect against delays in deliveries. However, we cannot guarantee that we will not
experience delays in the supply of critical components in the future or that we will have
a sufficient inventory of critical components at such time to produce products at full
capacity. Additionally, a key component in many of our cards is manufactured by Intel, one
of our competitors. While we have not encountered difficulties in purchasing such
components from Intel&#146;s distributors, we cannot guarantee that we will continue to be
able to purchase such components without delays or at reasonable prices. In the event that
we are not able to purchase key components of our products from our limited sources, or
are able to purchase these key components only under unreasonable terms, we may need to
redesign certain products. We cannot guarantee that we will have adequate resources for
such a redesign or that such a redesign will be successful. Such inability to obtain
alternative resources or to successfully redesign our products could have a material
adverse effect on our business, results of operations and financial condition. </font></p>

<p align=center>
<font size=2>5</font></p>
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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Inability to receive
information from our key component manufacturers could affect our ability to develop new
products required by our OEMs and by the industry in which we operate.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Our products are based on networking
controllers which are manufactured by either Broadcom or Intel. In order to design our
products we need to receive information that enables us to design products with the use of
such controllers. There can be no assurance that we will continue to receive all the
information required for designing products with the use of new controllers continuously
released by both Intel and Broadcom. Intel is our competitor and Broadcom may also compete
with our products. Such competition may also affect their decisions regarding the sharing
of information with us. The inability to obtain such information may adversely affect our
ability to design new products and may have an adverse effect. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>The market for our
products is highly competitive and some of our competitors may be better positioned than
we are.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>The market for our products is highly
competitive. We face competition from numerous companies, some of which are more
established, benefit from greater market recognition and have greater financial,
production and marketing resources than we do. For example, in the server networking
industry for which we have developed our multi-port Gigabit-Ethernet Server Networking
cards, our main competitor is Intel. We cannot guarantee that our present or contemplated
products will continue to be distinguishable from those of our competitors or that the
marketplace will find our products preferable to those of our competitors. Furthermore,
there can be no assurance that competitive pressures will not result in price reductions
that could materially adversely affect our business and financial condition and the
results of our operations. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>We may not be able to
prevent others from claiming that we have infringed their proprietary rights.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>We cannot guarantee that one or more
parties will not assert infringement claims against us. The cost of responding to claims
could be significant, regardless of whether the claims have merit. Significant and
protracted litigation may be necessary to determine the scope of the proprietary rights of
others or to defend against claims of infringement, regardless of whether the claims have
merit. Although we believe that all our products use only our intellectual property, or
intellectual property which is properly licensed to us, in the event that any infringement
claim is brought against us and infringement is proven, we could be required to
discontinue the use of the relevant technology, to cease the manufacture, use and sale of
infringing products, to incur significant litigation damages, costs and expenses, to
develop non-infringing technology or to obtain licenses to the alleged infringing
technology and to pay royalties to use such licenses. There can be no assurance that we
would be able to develop any such alternative technologies or obtain any such licenses on
terms commercially acceptable to us. Although in the past we have resolved a claim of
infringement through a license agreement, the terms of which did not have a material
effect on our business, any infringement claim or other litigation against us could
seriously harm our business, operating results and financial condition. While there are no
lawsuits or other claims currently pending against us regarding the infringement of
patents or intellectual property rights of others, we have been a party to such claims in
the past and may be party to such claims in the future. </font></p>

<p align=center>
<font size=2>6</font></p>
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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>We are dependent on key
personnel.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Our success has been, and will be,
dependent to a large degree on our ability to retain the services of key personnel and to
attract additional qualified personnel in the future. Competition for such personnel is
intense. There can be no assurance that we will be able to attract, assimilate or retain
key personnel in the future and our failure to do so would have a material adverse affect
on our business, financial condition and results of operations. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Exchange rate
fluctuations and international risks could increase the cost of our operations.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Substantially all of our
international sales are denominated in U.S. dollars and may be subject to government
controls and other risks, including, in some cases, export licenses, federal restrictions
on export, currency fluctuations, political instability, trade restrictions, and changes
in tariffs and freight rates. We believe that the rate of inflation in Israel and exchange
rate fluctuations between the NIS and the U.S. dollar have had a minor effect on our
business to date. However, our dollar costs in Israel will increase if inflation in Israel
exceeds the devaluation of the NIS against the dollar, if the timing of such devaluation
lags behind inflation in Israel or if the dollar devaluates against the NIS. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>If we are characterized
as a passive foreign investment company for U.S. federal income tax purposes, our U.S.
shareholders may suffer adverse tax consequences.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>We will be a passive foreign
investment company, or PFIC, if 75% or more of our gross income in a taxable year,
including our pro rata share of the gross income of any company, U.S. or foreign, in which
we are considered to own, directly or indirectly, 25% or more of the shares by value, is
passive income. Alternatively, we will be considered to be a PFIC if at least 50% of our
assets in a taxable year, averaged over the year and ordinarily determined based on fair
market value and including our pro rata share of the assets of any company in which we are
considered to own, directly or indirectly, 25% or more of the shares by value, are held
for the production of, or produce, passive income. If we were to be a PFIC, and a U.S.
Holder does not make an election to treat us as a &#147;qualified electing fund,&#148; or
QEF, or a &#147;mark to market&#148; election, &#147;excess distributions&#148; to a U.S.
Holder, and any gain recognized by a U.S. Holder on a disposition or our ordinary shares,
would be taxed in an unfavorable way. Among other consequences, our dividends, to the
extent that they constituted excess distributions, would be taxed at the regular rates
applicable to ordinary income, rather than the 15% maximum rate applicable to certain
dividends received by an individual from a qualified foreign corporation, and certain
&#147;interest&#148; charges may apply. In addition, gains on the sale of our shares would
be treated&nbsp;in the same way as&nbsp;excess distributions. The tests for determining
PFIC status are applied annually and it is difficult to make accurate predictions of
future income and assets, which are relevant to the determination of PFIC status. In
addition, under the applicable statutory and regulatory provisions, it is unclear whether
we would be permitted to use a gross loss from sales (sales less cost of goods sold) to
offset our passive income in the calculation of gross income. As a result of our
substantial cash position, if the value of our shares declines, there is a substantial
risk that we will be classified as a PFIC under the asset test described above. We believe
that we were not deemed to be classified as a PFIC in prior years. However, the U.S.
Internal Revenue Service may not accept this determination and there can be no assurance
that we will not be classified as a PFIC in the future. We believe that our ordinary
shares should not be treated as stock of a passive foreign investment company for United
States federal income tax purposes, but this conclusion is a factual determination made
annually and may be subject to change. In light of the uncertainties described above, no
assurance can be given that we will not be a PFIC in any year. A U.S. Holder who makes a
QEF election is taxed currently on such holder&#146;s proportionate share of our earnings.
If the IRS determines that we are a PFIC for a year with respect to which we have
determined that we were not a PFIC, however, it might be too late for a U.S. Holder to
make a timely QEF election, unless the U.S. Holder qualifies under the applicable Treasury
regulations to make a retroactive (late) election. U.S. Holders who hold ordinary shares
during a period when we are a PFIC will be subject to the foregoing rules, even if we
cease to be a PFIC, subject to exceptions for U.S. Holders who made a timely QEF or
mark-to-market election, or certain other elections. Accordingly, our shareholders are
urged to consult their tax advisors regarding the application of PFIC rules. </font></p>

<p align=center>
<font size=2>7</font></p>
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<P STYLE="page-break-after:always"></P>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>The trading volume of our
shares has been low in the past and may be low in the future, resulting in lower than
expected market prices for our shares.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Our shares have been traded at low
volumes in the past and may be traded at low volumes in the future for reasons related or
unrelated to our performance. This low trading volume may result in lower than expected
market prices for our ordinary shares and our shareholders may not be able to resell their
shares for more than they paid for them. </font></p>

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<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Israeli courts might not
enforce judgments rendered outside of Israel.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>We are incorporated in Israel. All of
our executive officers and all of our directors are non-residents of the United States,
and a substantial portion of our assets and the assets of these persons are located
outside the United States. Therefore, it may be difficult to enforce a judgment obtained
in the United States against us or any such persons. It may also be difficult to enforce
civil liabilities under U.S. federal securities laws in original actions instituted in
Israel. However, subject to certain time limitations, Israeli courts may enforce United
States final executory judgments for liquidated amounts in civil matters obtained after
due trial before a court of competent jurisdiction (according to the rules of private
international law currently prevailing in Israel) which enforces similar Israeli
judgments, provided that the requisite procedural and legal requirements are adhered to.
If a foreign judgment is enforced by an Israeli court, it generally will be payable in
NIS, which can then be converted into foreign currency at the rate of exchange of such
foreign currency on the date of payment. Pending collection, the amount of the judgment of
an Israeli court stated in NIS (without any linkage to a foreign currency) ordinarily will
be linked to the Israeli consumer price index plus interest at the annual statutory rate
prevailing at such time. Judgment creditors bear the risk of unfavorable exchange rates. </font></p>

<p align=center>
<font size=2>8</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>The political environment
and hostilities in Israel could harm our business.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>Since the establishment of the State
of Israel in 1948, a state of hostility has existed between Israel and the Arab countries
in the region. This state of hostility has varied in degree and intensity over time. There
has also been conflict and unrest between Israel, the Palestinian Authority and certain
terrorist groups operating within the Palestinian Authority and Lebanon. A significant
increase in violence began in September 2000 and has continued with varying levels of
severity into 2007, the most severe of which was Israel&#146;s war with the Hizbullah
militant group in July and August of 2006. While the armed confrontation in 2006 and
previous hostilities did not have a material adverse impact on our business, we cannot
guarantee that hostilities will not be renewed and have such an effect in the future. The
political and security situation in Israel may result in parties with whom we have
contracts claiming that they are not obligated to perform their commitments under those
agreements pursuant to force majeure provisions. Any hostilities involving Israel or the
interruption or curtailment of trade between Israel and its present trading partners could
adversely affect our operations and could make it more difficult for us to raise capital.
Furthermore, many of our facilities are located in Israel. Since we do not have a detailed
disaster recovery plan that would allow us to quickly resume business activity, we could
experience serious disruptions if acts associated with this conflict result in any serious
damage to our facilities. Our business interruption insurance may not adequately
compensate us for losses that may occur and any losses or damages incurred by us could
have a material adverse effect on our business. Any future armed conflicts or political
instability in the region would likely negatively affect business conditions and harm our
results of operations. </font></p>

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<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Many of our employees in
Israel are required to perform military reserve duty.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>All non-exempt male adult permanent
residents of Israel under the age of 40 are obligated to perform military reserve duty and
may be called to active duty under emergency circumstances. In recent years, there have
been significant call-ups of military reservists, and it is possible that there will be
additional call-ups in the future. While we have operated effectively despite these
conditions in the past, we cannot assess what impact these conditions may have in the
future, particularly if emergency circumstances arise. Our operations could be disrupted
by the absence for a significant period of one or more of our executive officers or key
employees or a significant number of our other employees due to military service. Any
disruption in our operations would harm our business. </font></p>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>We are affected by
volatility in the securities markets.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>The securities markets in general
have experienced volatility which has particularly affected the securities of many
high-technology companies and particularly those in the fields of communications, software
and internet, including companies that have a significant presence in Israel. This
volatility has often been unrelated to the operating performance of these companies and
may cause difficulties in raising additional financing required to effectively operate and
grow their businesses. Such difficulties and the volatility of the securities markets in
general may affect our financial results. </font></p>

<p align=center>
<font size=2>9</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>We are affected by
worldwide downturns in industries based on technology.</I></B> </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>The volatility in the securities
markets discussed above and its effect on high-technology companies may have a ripple
effect on our performance. In the last downturn which the markets experienced beginning in
2001, technology companies dealing in communications and computers were severely affected
and some were forced to cease operations. We felt the effects of this downturn in 2001
through 2003. We can give no assurance that our results will not be affected on a going
forward basis by any future downturns. </font></p>

<a name=zk104></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>SPECIAL NOTE ON
FORWARD-LOOKING STATEMENTS </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
statements incorporated by reference or contained in this prospectus discuss our future
expectations, contain projections of our results of operations or financial condition, and
include other forward-looking information within the meaning of Section 27A of the
Securities Act of 1933, as amended. Our actual results may differ materially from those
expressed in forward-looking statements made or incorporated by reference in this
prospectus. Forward-looking statements that express our beliefs, plans, objectives,
assumptions or future events or performance may involve estimates, assumptions, risks and
uncertainties. Therefore, our actual results and performance may differ materially from
those expressed in the forward-looking statements. Forward-looking statements often,
although not always, include words or phrases such as the following: &#147;may&#148;,
&#147;will likely result,&#148; &#147;are expected to,&#148; &#147;will continue,&#148;
&#147;is anticipated,&#148; &#147;estimate,&#148; &#147;intends,&#148; &#147;plans,&#148;
&#147;projection&#148; and &#147;outlook&#148; or similar expressions. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should not unduly rely on forward-looking statements contained or incorporated by
reference in this prospectus. Various factors discussed in this prospectus, including, but
not limited to, all the risks discussed in &#147;Risk Factors,&#148; and in our other SEC
filings may cause actual results or outcomes to differ materially from those expressed in
forward-looking statements. You should read and interpret any forward-looking statements
together with these documents. </font></p>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
forward-looking statement speaks only as of the date on which that statement is made. We
will not update any forward-looking statement to reflect events or circumstances that
occur after the date on which such statement is made. </font></p>

<a name=zk105></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>CAPITALIZATION AND
INDEBTEDNESS </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth our capitalization and indebtedness as of December 31, 2006 on
an actual basis and, on an as adjusted basis to give effect to the issuance of 875,000
shares and 229,687 warrants. This table does not give pro forma effect to the proceeds we
may receive from the exercise of the warrants and the issuance of shares issuable upon the
exercise of the warrants. </font></p>

<p align=center>
<font size=2>10</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Actual</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>As Adjusted</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=1>(US dollars in thousands)</FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="77%" Align="LEFT"><FONT FACE="Times New Roman" SIZE="2"><B>Indebtedness</B> </FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Width="7%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Width="7%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Short-term bank credit</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>-</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>-</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE="2"><B>Shareholders' equity</B> </FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Ordinary shares, NIS 0.01 par value; authorized 10,000,000</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>shares;  issued 5,213,600 as at December 31, 2006 and;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>outstanding 5,198,629 as at December 31, 2006</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>16</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>18</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Additional paid-in capital</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE="2"><B>11,858</B> </FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE="2"><B>28,594</B> </FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Treasury shares (at cost) - 14,971 ordinary shares as at</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>December 31, 2006</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>(38</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>(38</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>)</B> </FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Retained earnings</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE="2"><B>1,345</B> </FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE="2"><B>1,345</B> </FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total shareholders' equity</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>13,181</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE="2"><B>29,919</B> </FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE="2"><B>Total capitalization and indebtedness</B> </FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE="2"><B>13,181</B> </FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE="2"><B>29,919</B> </FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD></TR>
</TABLE>
<Br>


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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth on an actual basis in the foregoing table excludes the following
securities as of December 31, 2006: </font></p>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(i) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>377,950
ordinary shares issuable upon exercise of options granted to employees                and
directors with exercise prices ranging from $0.90 to $5.75; and </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(ii) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>400,000
ordinary shares issuable upon exercise of warrants issued in our January
               2006 public offering in Israel with an exercise price of NIS 39.84 per
share and                exercisable until January 31, 2008. </font></td>
</tr>
</table>
<br>

<a name=zk106></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>USE OF PROCEEDS </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will not receive any proceeds from the sale of ordinary shares by the selling
stockholders. All net proceeds from the sale of the ordinary shares covered by this
prospectus will go to the selling stockholders. Upon exercise by payment of cash of any
warrants whose underlying shares are covered hereby, however, we will receive the exercise
price of the warrants. If all of such warrants are exercised for cash, we will receive
approximately $6.49 million. We expect to use the proceeds we receive from the exercise of
warrants, if any, for working capital and for general corporate purposes. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have agreed to bear all expenses relating to the registration of the securities registered
pursuant to this prospectus. </font></p>

<p align=center>
<font size=2>11</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>

<a name=zk107></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>MARKET PRICE DATA </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
primary trading market for our ordinary shares is the NASDAQ Capital Market, where our
shares are listed and traded under the symbol SILC (previously SILCF). The table below
sets forth the high and low bid prices in dollars of our ordinary shares, as reported by
NASDAQ during the indicated periods: </font></p>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <Th Colspan="3" Align="Left"><FONT FACE="Times New Roman" SIZE=1>PERIOD</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>HIGH</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>LOW</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<Tr>
      <Td> &nbsp;</td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td></tr>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="69%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>LAST 6 CALENDAR MONTHS</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="4%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Width="10%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Width="10%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>May, 2007&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>23.89</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>19.06</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>April, 2007&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>26.74</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>16.42</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>March, 2007&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>17.88</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>11.77</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>February, 2007&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>16.00</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>13.59</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>January, 2007&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>14.40</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>8.40</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>December, 2006&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>9.54</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>6.30</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>FINANCIAL QUARTERS DURING THE PAST TWO YEARS</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>First Quarter, 2007&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>17.88</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>8.40</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Fourth Quarter, 2006&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>9.54</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6.03</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Third Quarter, 2006&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>7.43</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>3.75</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Second Quarter, 2006&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10.79</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6.50</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>First Quarter, 2006&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>12.46</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>6.58</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Fourth Quarter, 2005&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>9.39</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3.31</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Third Quarter, 2005&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>5.09</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2.75</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Second Quarter, 2005&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4.89</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2.59</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>FIVE MOST RECENT FULL FINANCIAL YEARS</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2006&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>12.46</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3.75</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>2005&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>9.39</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2.34</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2004&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3.21</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1.67</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>2003&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>1.97</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0.28</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2002&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1.01</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0.30</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<Br>

<p align=center>
<font size=2>12</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>On December 27, 2005, our shares
commenced trading on the Tel Aviv Stock Exchange in Israel under the symbol
&#147;SILC&#148;. The following table sets forth, for the periods indicated, the high and
low reported sales prices, in NIS, of the ordinary shares on the Tel Aviv Stock Exchange: </font></p>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <Th Colspan="3" Align="Left"><FONT FACE="Times New Roman" SIZE=1>PERIOD</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>HIGH</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>LOW</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<Tr>
      <Td> &nbsp;</td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td>
      <Td> </td></tr>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="70%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>LAST SIX CALENDAR MONTHS</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="3%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Width="10%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Width="10%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>May, 2007&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>95.89</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>78.62</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>April, 2007&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>104.90</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>68.25</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>March, 2007&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>74.94</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>49.26</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>February, 2007&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>65.99</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>56.20</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>January, 2007&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>60.50</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>36.31</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>December, 2006&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>38.60</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>30.54</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>FINANCIAL QUARTERS DURING THE PAST TWO YEARS</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>First Quarter, 2007&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>74.94</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>36.31</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Fourth Quarter, 2006&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>41.00</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27.01</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Third Quarter, 2006&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>32.40</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>20.16</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Second Quarter, 2006&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>49.50</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>30.21</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>First Quarter, 2006&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>56.59</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>30.25</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Fourth Quarter, 2005&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>41.25</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>39.99</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Third Quarter, 2005&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Second Quarter, 2005&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=7><FONT FACE="Times New Roman" SIZE=2>FIVE MOST RECENT FULL FINANCIAL YEARS</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2006&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>56.59</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>20.16</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>2005&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>41.25</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>39.99</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2004&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>2003&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2002&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>---</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
<Br>

<p align=center>
<font size=2>13</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>

<a name=zk108></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>PLAN OF DISTRIBUTION </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>The selling stockholders and any of
their respective pledgees, donees, assignees and other successors in interest may, from
time to time, sell any or all of their shares of common stock on any stock exchange,
market or trading facility on which the shares are traded or in private transactions.
These sales may be at fixed or negotiated prices. The selling stockholders may use any one
or more of the following methods when selling shares: </font></p>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>ordinary
brokerage transactions and transactions in which the broker-dealer solicits purchasers;</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>block
trades in which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the transaction; </font></td>
</tr>
</table>
<br>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Workstation" -->
<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>purchases
by a broker-dealer as principal and resale by the broker-dealer for its account;</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>an
exchange distribution in accordance with the rules of the applicable exchange;</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>privately
negotiated transactions;</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>short
sales;</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>broker-dealers
may agree with the selling stockholders to sell a specified number of such
         shares at a stipulated price per share;</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>through
the writing of options, swaps or other derivatives which may or may not be listed on an
         exchange;</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>a
combination of any such methods of sale; and</font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>any
other method permitted pursuant to applicable law.</font></td>
</tr>
</table>
<br>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders may also sell shares under Rule 144 under the Securities Act, if
available, rather than under this prospectus. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders may also engage in short sales against the box after this
registration statement becomes effective, puts and calls and other transactions in our
shares or derivatives of our shares and may sell or deliver shares in connection with
these trades. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to participate
in sales. Broker-dealers may receive commissions or discounts from the selling
stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the
purchaser) in amounts to be negotiated. The selling stockholders do not expect these
commissions and discounts to exceed what is customary in the types of transactions
involved. Any profits on the resale of shares of common stock by a broker-dealer acting as
principal might be deemed to be underwriting discounts or commissions under the Securities
Act. </font></p>

<p align=center>
<font size=2>14</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders may enter into derivative or other hedging transactions with
financial institutions. These financial institutions may in turn engage in sales of the
shares to hedge their position, deliver this prospectus in connection with some or all of
those sales and use the shares covered by this prospectus to close out any short position
created in connection with those sales. The selling stockholders may also sell shares of
the shares short using this prospectus and deliver the shares covered by this prospectus
to close out such short positions, or loan or pledge the shares to financial institutions
that in turn may sell the shares using this prospectus. The selling stockholders may
pledge or grant a security interest in some or all of the shares covered by this
prospectus to support a derivative or hedging position or other obligation and, if the
selling stockholders default in the performance of their obligations, the pledgees or
secured parties may offer and sell the shares from time to time pursuant to this
prospectus. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discounts,
concessions, commissions and similar selling expenses, if any, attributable to the sale of
shares will be borne by a selling stockholder. The selling stockholders may agree to
indemnify any agent, dealer or broker-dealer that participates in transactions involving
sales of the shares against certain liabilities, including liabilities that may be imposed
on that person under the Securities Act. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders may from time to time pledge or grant a security interest in some or
all of the shares of common stock owned by them and, if they default in the performance of
their secured obligations, the pledgees or secured parties may offer and sell the shares
of common stock from time to time under this prospectus, or, if required, after we have
filed a supplement to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act of 1933 supplementing or amending the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders
under this prospectus. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders also may transfer the shares of common stock in other circumstances,
in which case the transferees, pledgees or other successors in interest will be the
selling beneficial owners for purposes of this prospectus and may sell the shares of
common stock from time to time under this prospectus, or, if required, after we have filed
a supplement to this prospectus under Rule 424(b)(3) or other applicable provision of the
Securities Act of 1933 supplementing or amending the list of selling stockholders to
include the pledgee, transferee or other successors in interest as selling stockholders
under this prospectus. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders and any broker-dealers or agents that are involved in selling the
shares of common stock may be deemed to be &#147;underwriters&#148; within the meaning of
the Securities Act in connection with such sales. In such event, any commissions received
by such broker-dealers or agents and any profit on the resale of the shares of common
stock purchased by them may be deemed to be underwriting commissions or discounts under
the Securities Act. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are required to pay all fees and expenses incident to the registration of the shares of
common stock. We have agreed to indemnify the selling stockholders against certain losses,
claims, damages and liabilities, including liabilities under the Securities Act. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders have advised us that they have not entered into any agreements,
understandings or arrangements with any underwriters or broker-dealers regarding the sale
of their shares of common stock, nor is there an underwriter or coordinating broker acting
in connection with a proposed sale of shares of common stock by any selling stockholder.
If we are notified by any selling stockholder that any material arrangement has been
entered into with a broker-dealer for the sale of shares of common stock, if required, we
will file a supplement to this prospectus. If the selling stockholders use this prospectus
for any sale of the shares of common stock, they will be subject to the prospectus
delivery requirements of the Securities Act. </font></p>

<p align=center>
<font size=2>15</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have advised the selling stockholders that the anti-manipulation rules of Regulation M
under the Securities Exchange Act of 1934 may apply to sales of our common stock and
activities of the selling stockholders. </font></p>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>Expenses of the Offering </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have incurred, or expect to incur, the following estimated expenses in connection with the
registration of the securities covered by this prospectus: </font></p>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <Th> </th>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <Th> </th>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <Th> </th>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <Th> </th>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <Th> </th>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="5%"> </td>
     <Td Width="77%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Securities and Exchange Commission Registration Fee</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="3%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><Td Width="10%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2> 808</FONT></TD>
        <Td Width="3%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>.85</FONT></TD></TR>
<TR VALIGN=Bottom>
     <Td> </td>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <Td> </td>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Legal fees and expenses</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 20,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <Td> </td>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td> </td>
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Miscellaneous</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>  10,000</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <Td> </td>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <Td> </td>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <Td> </td>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> 31,808</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>.85</FONT></TD></TR>
<TR>
     <Td> </td>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#808080 SIZE=3></TD><TD></TD></TR>
</TABLE>
<Br>

<a name=zk109></a>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>SELLING STOCKHOLDERS </font></h1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>Beneficial ownership and
other information. </font></h1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
selling stockholders purchased the securities covered by this prospectus in a private
placement by us consummated on May 7, 2007. In the private placement, we sold an aggregate
of 875,000 ordinary shares and issued warrants to purchase 229,687 shares at an exercise
price of $28.25 per share (including warrants to purchase 10,937 shares issued to two of
the selling stockholders for their services as placement agents in connection with the
private placement). The warrants expire on the third anniversary of the effective date of
the registration statement of which this prospectus forms a part. The warrants contain
antidilution protections that are triggered upon the occurrence of certain events and
contain a &#147;net exercise&#148; feature, enabling the holders to exercise their
warrants on a &#147;cashless&#148; basis. </font></p>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as described herein, we have no material relationships with any of the selling
stockholders and have not had any material relationships with any of the selling
stockholders in the past three years. Cowen and Company, LLC and W. R. Hambrecht and Co.,
LLC, two of the selling stockholders, acted as co-placement agents for the private
placement in which the securities covered by this prospectus were sold. </font></p>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the selling stockholders has represented to us that it (i) purchased the securities in
the ordinary course of business and (ii) did not have an agreement or understanding,
directly or indirectly, with any person to distribute the securities at the time it
purchased the securities. </font></p>

<p align=center>
<font size=2>16</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing
in this Registration Statement shall be construed as an admission that any selling
stockholder is the beneficial owner of any of our securities, other than the securities
held directly by such party, nor that any selling stockholder or other persons or entities
constitute a &#147;group&#148;, for purposes of Section 13(d) of the Exchange Act and the
rules promulgated thereunder. The warrants contain a limitation on the number of ordinary
shares purchasable thereunder. Under the limitation, the holder will not have the right to
exercise any portion of the warrants, to the extent that after giving effect to such
exercise, the holder and other persons with whom such holder&#146;s ownership would be
aggregated for purposes of beneficial ownership rules, would own in excess of 4.99% of our
outstanding ordinary shares immediately after such exercise; the number of shares in the
second column in the below table does not reflect this limitation. This limitation may be
waived, at the election of the holder, which election will not become effective until 61
days after a holder provides us with notice thereof, provided that the percentage
applicable to the warrants issued to CD Investment Partners, Ltd. is 4.9% and the
limitation may not be waived. </font></p>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table assumes that each selling stockholder will sell all of the securities
owned by it and covered by this prospectus. Information included in the table is based
upon information provided by the selling stockholders. Our registration of these
securities does not necessarily mean that the selling stockholders will sell any or all of
the securities. </font></p>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as otherwise noted below none of the selling stockholders are broker-dealers or affiliates
of broker-dealers. </font></p>








<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Address of <Br>Selling Stockholder</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially<BR>Owned Prior to Offering/<BR>Percentage of Class(1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Being Offered</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially Owned<BR>Upon Completion of Offering /<BR>Percentage of Class</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="43%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>Fort Mason Partners, LP</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>4 Embarcadero Center</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Suite 2050</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>San Francisco, California</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>94111, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>5,329 / *%(2)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>5,329</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Fort Mason Master, LP</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>4 Embarcadero Center</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 2050</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>San Francisco, California</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>94111, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>82,171 / 1.27%(3)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>82,171</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Hudson Bay Fund, LP</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>170 Broadway</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>40<Sup>th</sup> Floor</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>10271, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>37,625 / *%(4)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>37,625</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</table>
<Br>

<p align=center>
<font size=2>17</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Address of <Br>Selling Stockholder</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially<BR>Owned Prior to Offering/<BR>Percentage of Class(1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Being Offered</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially Owned<BR>Upon Completion of Offering /<BR>Percentage of Class</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Hudson Bay Overseas Fund, Ltd.</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>170 Broadway</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>40<Sup>th</sup> Floor</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="43%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>10271, USA</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>49,875 / *%(5)</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>49,875</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Iroquois Master Fund Ltd.</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>641 Lexington Avenue</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>26<Sup>th</sup> Floor</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>10022, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>37,500 / *%(6)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>37,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Cranshire Capital, LP</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>3100 Dundee Road</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Suite 703</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Northbrook, Illinois</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>60062, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>37,500 / *%(7)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>37,500</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Evolution Master Fund Ltd. SPC,</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Segregated Portfolio M</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>c/o Evolution Capital Management LLC</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2425 Olympic Blvd.</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 120E</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Santa Monica, California</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>90404, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>46,875 / *%(8)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>46,875</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Maccabee Capital, LP</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>489 Fifth Avenue</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>2<Sup>nd</sup> Floor</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>10017, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>53,095 / *%(9)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>25,000</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>28,095/0.43%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</table>
<Br>

<p align=center>
<font size=2>18</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>

<Table Cellpadding="0" Cellspacing="0" Width="100%">
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Address of <Br>Selling Stockholder</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially<BR>Owned Prior to Offering/<BR>Percentage of Class(1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Being Offered</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially Owned<BR>Upon Completion of Offering /<BR>Percentage of Class</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Radcliffe SPC, Ltd. for and on behalf of</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>the Class A Segregated Portfolio</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>c/o RG Capital Management, LP</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>3 Bala Plaza - East</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Suite 501</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Bala Cynwyd, Pennsylvania</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="43%" Align="Left"><FONT FACE="Times New Roman" SIZE=2>19004, USA</FONT></TD>
     <Td Width="1%" Align="Left"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="2%" Align="Left"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="Right"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="Right"><FONT FACE="Times New Roman" SIZE=2>50,000 / *%(10)</FONT></TD>
     <Td Width="2%" Align="Left"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="Right"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="Right"><FONT FACE="Times New Roman" SIZE=2>50,000</FONT></TD>
     <Td Width="2%" Align="Left"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="Right"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
     <Td Width="2%" Align="Left"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" >
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>RHP Master Fund, Ltd.</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>c/o Rock Hill Investment Management, LP</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>3 Bala Plaza - East</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 585</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Bala Cynwyd, Pennsylvania</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>19004, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>43,750 / *%(11)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>43,750</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>SF Capital Partners Ltd.</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>c/o Stark Offshore Management, LLC</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>3600 South Lake Drive</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>St. Francis, Wisconsin</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>53235, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>125,000 / 1.92%(12)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>125,000</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>UBS O'Connor LLC Fbo O'Connor Pipes</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Corporate Strategies Master Limited</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1 North Wacker Drive</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Chicago, Illinois</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>60606, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>37,500 / *%(13)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>37,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</table><Br>

<p align=center>
<font size=2>19</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Address of <Br>Selling Stockholder</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially<BR>Owned Prior to Offering/<BR>Percentage of Class(1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Being Offered</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially Owned<BR>Upon Completion of Offering /<BR>Percentage of Class</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Rockmore Investment Master Fund Ltd.</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>150 East 58<Sup>th</sup> Street</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>28<Sup>th</sup> Floor</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="43%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>10155, USA</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>31,250 / *%(14)</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>31,250</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Bluenose Capital Fund (QP), LP</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>360 Madison Avenue</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>21<Sup>st</sup> Floor</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>10017, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>48,962 / *%(15)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>48,962</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Bluenose Master Fund, Ltd.</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>c/o Intrepid Fund Management, LLC</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>360 Madison Avenue</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>21st Floor</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>10017, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>76,038 /1.17%(16)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>76,038</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>JMG Triton Offshore Fund, Ltd.</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>11601 Wilshire Blvd.</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 2100</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Los Angeles, California</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>90025, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>21,875 / *%(17)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>21,875</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>JMG Capital Partners, LP</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>11601 Wilshire Blvd.</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Suite 2100</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Los Angeles, California</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>90025, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>21,875 / *%(18)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>21,875</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</table>
<Br>

<p align=center>
<font size=2>20</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Address of <Br>Selling Stockholder</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially<BR>Owned Prior to Offering/<BR>Percentage of Class(1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Being Offered</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially Owned<BR>Upon Completion of Offering /<BR>Percentage of Class</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" Colspan="10"><FONT FACE="Times New Roman" SIZE=2>Heller Capital Investments</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" Colspan="10"><FONT FACE="Times New Roman" SIZE=2>700 E. Palisade Avenue</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" Colspan="10"><FONT FACE="Times New Roman" SIZE=2>Englewood Cliffs, New Jersey</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="43%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>07632, USA</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>37,500 / *%(19)</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>37,500</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Enable Opportunity Partners LP</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>One Ferry Building</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 255</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>San Francisco, California</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>94111, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,000 / *%(20)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Enable Growth Partners LP</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>One Ferry Building</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Suite 255</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>San Francisco, California</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>94111, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>42,500 / *%(21)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>42,500</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Capital Ventures International</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>c/o Heights Capital Management</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>101 California Street</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 3250</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>San Francisco, California</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>94111, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>46,875 / *%(22)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>46,875</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>CD Investment Partners, Ltd.</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>111 S. Wacker Drive</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Suite 3950</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Chicago, Illinois</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>60606, USA</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>43,750 / *%(23)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>43,750</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</table>
<Br>

<p align=center>
<font size=2>21</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Name and Address of <Br>Selling Stockholder</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially<BR>Owned Prior to Offering/<BR>Percentage of Class(1)</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Being Offered</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>Shares Beneficially Owned<BR>Upon Completion of Offering /<BR>Percentage of Class</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Crosslink Crossover Fund V, LP</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Two Embarcadero Center</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Suite 2200</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>San Francisco, California</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Width="43%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>94111, USA</FONT></TD>
     <Td Width="1%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>137,500 / 2.11%(24)</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>137,500</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="1%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Width="15%" Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
     <Td Width="2%" Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Pierce Diversified Strategy Master Fund</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>LLC, Ena</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>One Ferry Building</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 255</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>San Francisco, California</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>94111, USA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,500 / *%(25)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,500</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>Cowen and Company, LLC</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>1221 Avenue of the Americas</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT" colspan=10><FONT FACE="Times New Roman" SIZE=2>New York, New York</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<Tr Valign="Bottom" Bgcolor="#CCEEFF">
     <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>10020</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>8,750/ *%(26)</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>8,750</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><Td Align="RIGHT"><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <Td Align="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>W. R. Hambrecht and Co., LLC</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>539 Bryant Street, Suite 100</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>San Francisco, CA 94107</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,187/ *%(27)</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,187</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>0/0%</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE><Br>

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<P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>* Denotes less than 1%. </font></p>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>1</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Beneficial
ownership is calculated as of May 28, 2007 in accordance with General Instruction F. to
Form 20-F and is based on 6,473,998 ordinary shares outstanding. </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>22</font></p>
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<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup> 2</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
1,066 ordinary shares underlying warrants. Fort Mason Capital, LLC,
                    serves as the general partner of Fort Mason Partners, LP, and, in
such capacity,                     exercises sole voting and dispositive authority with
respect to such shares. Mr.                     Daniel German is the sole managing member
of Fort Mason Capital, LLC. Mr. German                     and Fort Mason Capital, LLC
each disclaim beneficial ownership of such shares,                     except to the
extent of his or its pecuniary interest therein, if any. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>3</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
16,434 ordinary shares underlying warrants. Fort Mason Capital, LLC,
                    serves as the general partner of Fort Mason Master, LP, and, in such
capacity,                     exercises sole voting and dispositive authority with
respect to such shares. Mr.                     Daniel German is the sole managing member
of Fort Mason Capital, LLC. Mr. German                     and Fort Mason Capital, LLC
each disclaim beneficial ownership of such shares,                     except to the
extent of his or its pecuniary interest therein, if any. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>4</sup> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                   Includes
7,525 ordinary shares underlying warrants. Messrs. Sander Gerber, John
                    Doscas and Yoav Roth share voting and dispositive power over these
securities.                     Messrs. Gerber, Doscas and Roth each disclaim beneficial
ownership of the                     securities held by Hudson Bay Fund, LP. This selling
stockholder is affiliated                     with one or more NASD members, none of whom
are currently expected to                     participate in the sale pursuant to this
prospectus of ordinary shares purchased                     by the selling stockholder in
this offering. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>5</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
9,975 ordinary shares underlying warrants. Messrs. Sander Gerber, John
                    Doscas and Yoav Roth share voting and dispositive power over these
securities.                     Messrs. Gerber, Doscas and Roth each disclaim beneficial
ownership of the                     securities held by Hudson Bay Overseas Fund, Ltd.
This selling stockholder is                     affiliated with one or more NASD members,
none of whom are currently expected to                     participate in the sale
pursuant to this prospectus of ordinary shares purchased                     by the
selling stockholder in this offering. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>6</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
7,500 ordinary shares underlying warrants. Joshua Silverman has voting
                    and dispositive authority over the shares held by Iroquois Master
Fund Ltd. Mr.                     Silverman disclaims beneficial ownership of these
shares. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>7</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
7,500 ordinary shares underlying warrants. Mitchell P. Kopin, President
                    of Downsview Capital, Inc., the general partner of Cranshire Capital,
LP, has                     sole voting and dispositive authority over the shares. Mr.
Kopin and Downsview                     Capital, Inc. each disclaims beneficial ownership
of the securities. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>8</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
9,375 ordinary shares underlying warrants. Pursuant to an investment
                    management agreement, Evolution Capital Management LLC (&#147;Evolution&#148;)
                    serves as the investment manager of Evolution Master Fund Ltd. SPC,
Segregated                     Portfolio M (the &#147;M Fund&#148;) and consequently has
voting control and                     investment discretion over securities held by the
M Fund. Michael Lerch is the                     Chief Investment Officer of Evolution
and has voting control and investment                     power over the securities held
by the M Fund. Each of Evolution and Michael                     Lerch disclaims
beneficial ownership of the securities held by the M Fund. This
                    selling stockholder is affiliated with a NASD member, whom is not
currently                     expected to participate in the sale pursuant to this
prospectus of ordinary                     shares purchased by the selling stockholder in
this offering. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>9</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
5,000 ordinary shares underlying warrants and 28,095 shares held by the
                    selling stockholder prior to the private placement described above.
Shai Gerson                     has voting and dispositive authority over these shares.
Maccabee Capital, LP is                     affiliated with Dov Wiener and Richard Sands,
both of whom are NASD members and                     also general partners of the fund. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>10</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
10,000 ordinary shares underlying warrants. Pursuant to an investment
                    management agreement, RG Capital Management, L.P. (&#147;RG Capital&#148;)
                    serves as the investment manager of Radcliffe SPC, Ltd.&#145;s Class
A                     Segregated Portfolio.&nbsp; RGC Management Company, LLC (&#147;Management&#148;)
                    is the general partner of RG Capital.&nbsp; Steve Katznelson and
Gerald                     Stahlecker serve as the managing members of Management.&nbsp; Each
of RG                     Capital, Management and Messrs. Katznelson and Stahlecker
disclaim beneficial                     ownership of the securities owned by Radcliffe
SPC, Ltd. for and on behalf of                     the Class A Segregated Portfolio. </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>23</font></p>
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<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>11</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Includes 8,750
ordinary shares underlying warrants. RHP Master Fund, Ltd. is a party to an investment
management agreement with Rock Hill Investment Management, L.P., a limited partnership of
which the general partner is RHP General Partner, LLC. Pursuant to such agreement, Rock
Hill Investment Management directs the voting and disposition of shares owned by RHP
Master Fund. Messrs. Wayne Bloch and Peter Lockhart own all of the interests in RHP
General Partner. The aforementioned entities and individuals disclaim beneficial
ownership of our shares that are owned by the RHP Master Fund. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>12</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Includes 25,000
ordinary shares underlying warrants. Michael A. Roth and Brian J. Stark have voting and
dispositive authority over the securities owned by SF Capital Partners Ltd. Messrs. Roth
and Stark each disclaim beneficial ownership of such securities. This selling stockholder
is affiliated with a NASD member, whom is not currently expected to participate in the
sale pursuant to this prospectus of ordinary shares purchased by the selling stockholder
in this offering. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>13</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
7,500 ordinary shares underlying warrants. Jeff Putman is the Portfolio
                    Manager of UBS O&#146;Connor LLC fbo O&#146;Connor PIPES Corporate
Strategies                     Master Limited and has voting and dispositive authority
over these shares and                     thus may be deemed to beneficially own the
shares held by UBS O&#146;Connor LLC                     fbo O&#146;Connor PIPES
Corporate Strategies Master Limited. Mr. Putman                     disclaims beneficial
ownership of the shares held by UBS O&#146;Connor LLC fbo                     O&#146;Connor
PIPES Corporate Strategies Master Limited. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>14</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
6,250 ordinary shares underlying warrants. Rockmore Capital, LLC and
                    Rockmore Partners, LLC, each a limited liability company formed under
the laws                     of the State of Delaware, serve as the investment manager
and general partner,                     respectively, to Rockmore Investments (US) LP,
which invests all of its assets                     through Rockmore Investment Master
Fund Ltd., a company formed under the laws of                     Bermuda. By reason of
such relationships, Rockmore Capital, LLC and Rockmore                     Partners, LLC
may be deemed to share voting and dispositive authority over our
                    shares that are owned by Rockmore Investment Master Fund Ltd.
Rockmore Capital,                     LLC and Rockmore Partners, LLC disclaim beneficial
ownership of such shares.                     Rockmore Partners, LLC has delegated
authority to Rockmore Capital, LLC                     regarding the portfolio management
decisions with respect to the shares owned by                     Rockmore Investment
Master Fund Ltd. Mr. Bruce T. Bernstein and Mr. Brian Daly,                     as
officers of Rockmore Capital, LLC are responsible for the portfolio
                    management decisions of these shares. By reason of such authority,
Messrs.                     Bernstein and Daly may be deemed to share voting and
dispositive power over                     these shares. Messrs. Bernstein and Daly
disclaim beneficial ownership of such                     shares. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>15</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
9,792 ordinary shares underlying warrants. Bluenose Capital Fund (QP),
                    L.P. (&#147;Bluenose Capital Fund&#148;) is a Delaware limited
partnership. Its                     general partner is Intrepid Capital Advisors, LLC (&#147;ICA&#148;),
a Delaware                     limited liability company, that has voting and dispositive
power over Bluenose                     Capital Fund&#146;s investments, including the
shares offered pursuant to this                     prospectus. ICA is controlled by
Steven Shapiro. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>16</sup> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                   Includes
15,208 ordinary shares underlying warrants. Bluenose Master Fund, Ltd.
                    (&#147;Bluenose Master Fund&#148;) is a Cayman Islands exempted
company. Its                     investment manager is Intrepid Fund Management, LLC (&#147;IFM&#148;),
a                     Delaware limited liability company, that has voting and dispositive
power over                     Bluenose Master Fund&#146;s investments, including the
shares offered pursuant                     to this prospectus. IFM is controlled by
Steven Shapiro. </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>24</font></p>
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<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>17</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Includes 4,375
ordinary shares underlying warrants. JMG Triton Offshore Fund, Ltd. (the &#147;Fund&#148;)
is an international business company organized under the laws of the British Virgin
Islands. The Fund&#146;s investment manager is Pacific Assets Management LLC, a Delaware
limited liability company (the &#147;Manager&#148;) that has voting and dispositive power
over the Fund&#146;s investments, including the shares offered pursuant to this
prospectus. The equity interests of the Manager are owned by Pacific Capital Management,
Inc., a California corporation (&#147;Pacific&#148;) and Asset Alliance Holding Corp., a
Delaware corporation. The equity interests of Pacific are owned by Messrs. Roger Richter,
Jonathan M. Glaser and Daniel A. David. Messrs. Glaser and Richter have sole investment
discretion over the Fund&#146;s portfolio holdings. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>18</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Includes 4,375
ordinary shares underlying warrants. JMG Capital Partners, L.P. (&#147;JMG Partners&#148;)
is a California limited partnership. Its general partner is JMG Capital Management, LLC
(the &#147;Manager&#148;), a Delaware limited liability company and an investment adviser
that has voting and dispositive power over JMG Partners&#146;investments, including the
shares offered pursuant to this prospectus. The equity interests of the Manager are owned
by JMG Capital Management, Inc. (&#147;JMG Capital&#148;), a California corporation, and
Asset Alliance Holding Corp., a Delaware corporation. Jonathan M. Glaser is the executive
officer and director of JMG Capital and has sole investment discretion over JMG Partners&#146; portfolio
holdings. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>19</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Includes 7,500
ordinary shares underlying warrants. Ronald Heller has ultimate voting and dispositive
authority over the shares. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>20</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Includes 1,000
ordinary shares underlying warrants. Mitch Levine, as Managing Partner of the selling
stockholder, may be deemed to have voting and dispositive authority over the shares. Mr.
Levine disclaims beneficial ownership of these securities except to the extent of his
pecuniary interest therein, if any. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>21</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
8,500 ordinary shares underlying warrants. Mitch Levine, as Managing
                    Partner of the selling stockholder, may be deemed to have voting and
dispositive                     authority over the shares. Mr. Levine disclaims
beneficial ownership of these                     securities except to the extent of his
pecuniary interest therein, if any. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>22</sup> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                   Includes
9,375 ordinary shares underlying warrants. Heights Capital Management,
                    Inc., the authorized agent of Capital Ventures International (&#147;CVI&#148;),
                    has discretionary authority to vote and dispose of the shares held by
CVI and                     may be deemed to be the beneficial owner of these shares. Mr.
Martin Kobinger,                     in his capacity as Investment Manager of Heights
Capital Management, Inc., may                     also be deemed to have investment
discretion and voting power over the shares                     held by CVI.&nbsp; Mr.
Kobinger disclaims any such beneficial ownership of the                     shares. This
selling stockholder is under common control with one or more NASD
                    members, none of whom are currently expected to participate in the
sale pursuant                     to this prospectus of ordinary shares purchased by the
selling stockholder in                     this offering. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>23</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
8,750 ordinary shares underlying warrants. CD Capital Management LLC                     (&#147;CD
Capital&#148;), as investment manager for CD Investment Partners, Ltd.
                    (&#147;CDIP&#148;), ZP-II LP (&#147;ZP II&#148;), as the manager and
sole member                     of CD Capital, C3 Management Inc., (&#147;C3&#148;) as
the general partner of                     ZP-II, and John D. Ziegelman, as the Chairman
of the Board, President and                     Treasurer and the beneficial owner of
100% of the outstanding shares of common                     stock of C3, each may be
deemed to have beneficial ownership of the shares owned                     by CDIP which
are being registered hereunder. </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>25</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>24</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Includes
27,500 ordinary shares underlying warrants. Michael Stark is the
                    managing director of Crosslink Capital, Inc. which serves as the
investment                     adviser to Crossover Fund V Management LLC. Crossover Fund
V Management LLC is                     the general partner of Crosslink Crossover Fund
V, L.P. Crosslink Capital, Inc.,                     Crossover Fund V Management LLC,
Michael Stark, Thomas Bliska, Daniel Dunn,                     David Epstein, James
Feuille and Charles Finnie (collectively                     &#147;Crosslink&#148;) have
indirect beneficial ownership of these shares in                     their capacity as
investment adviser, general partner or control persons of                     Crosslink.
Crosslink disclaims beneficial ownership of these shares except to
                    the extent of their respective pecuniary interest. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>25</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Includes 500
ordinary shares underlying warrants. Mitch Levine, as Managing Partner of the selling
stockholder, may be deemed to have voting and dispositive authority over the shares. Mr.
Levine disclaims beneficial ownership of these securities except to the extent of his
pecuniary interest therein, if any. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>26</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Represents
8,750 ordinary shares underlying warrants. Cowen and Company, LLC                     (&#147;Cowen&#148;)
acted as co-placement agent to us in connection with the                     private
placement.&nbsp; Cowen is a broker-dealer registered with the Securities
                    and Exchange Commission under the Securities Exchange Act of 1934.&nbsp; David
                    M. Malcolm, on behalf of Cowen in his capacity as Executive
Vice-Chairman, has                     voting control and investment discretion over the
securities being                     offered.&nbsp; Mr. Malcolm disclaims beneficial
ownership of such shares.&nbsp;                    Cowen is a wholly-owned subsidiary of
Cowen Group, Inc., which is traded on the                     NASDAQ under the symbol
COWN.&nbsp;</font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><Sup>27</sup></font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>                    Represents
2,187 ordinary shares underlying warrants. Jonathan Fayman, in his
                    capacity as chief financial officer and managing director of W.R.
Hambrecht and                     Co., LLC has voting control and investment discretion
over the securities being                     offered. Mr. Fayman disclaims beneficial
ownership of such shares. </font></td>
</tr>
</table>
<br>

<a name=zk110></a>

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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>FOREIGN EXCHANGE
CONTROLS AND OTHER LIMITATIONS </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
current Israeli regulations, any dividends or other distributions paid in respect of our
ordinary shares purchased by nonresidents of Israel with certain non-Israeli currencies
(including dollars) and any amounts payable upon the dissolution, liquidation or winding
up of our affairs, as well as the proceeds of any sale in Israel of our securities to an
Israeli resident, will be freely repatriable in such non-Israeli currencies at the rate of
exchange prevailing at the time of conversion pursuant to the general permit issued under
the Israeli Currency Law, 1978, provided that Israeli income tax has been paid on (or
withheld from) such payments. Because exchange rates between the NIS and the U.S. dollar
fluctuate continuously, U.S. shareholders will be subject to any such currency fluctuation
during the period from when such dividend is declared through the date payment is made in
U.S. dollars. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments
outside Israel by the Company no longer require specific approval from the Controller of
Foreign Currency at the Bank of Israel. </font></p>

<a name=zk111></a>

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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>LEGAL MATTERS </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
validity of the securities offered in this prospectus will be passed upon for us by Yigal
Arnon &amp; Co., our Israeli counsel. </font></p>

<p align=center>
<font size=2>26</font></p>
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<a name=zk112></a>

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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>EXPERTS </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
consolidated financial statements of Silicom Ltd. and its subsidiary as of December 31,
2006 and 2005, and for each of the years in the three-year period ended December 31, 2006
have been incorporated by reference herein in reliance upon the report of Somekh Chaikin,
a member firm of KPMG International, independent registered public accounting firm,
incorporated by reference herein, and upon the authority of said firm as experts in
accounting and auditing. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
audit report covering the December 31, 2006 financial statements refer to a change in the
method of accounting for share-based compensation upon adoption of Financial Accounting
Standards Board Statement 123(R), &#147;Share-Based Payment&#148;. </font></p>

<a name=zk113></a>

<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ENFORCEABILITY OF CIVIL LIABILITIES AND
<Br>AGENT FOR SERVICE OF PROCESS IN THE UNITED STATES</B> </FONT>
</P>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are incorporated in Israel. All of our executive officers and directors and the Israeli
experts named herein are nonresidents of the United States, and a substantial portion of
our assets and of such persons&#146; are located outside the United States. For further
information regarding enforceability of civil liabilities against us and other persons,
see &#147;Risk Factors&#150; Israeli courts might not enforce judgments rendered outside
of Israel.&#148; </font></p>

<a name=zk114></a>

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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>WHERE YOU CAN FIND
MORE INFORMATION; INCORPORATION OF <Br>INFORMATION BY REFERENCE </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have filed a registration statement on Form F-3 with the Securities and Exchange
Commission in connection with this offering. In addition, we file reports with, and
furnish information to, the Securities and Exchange Commission. You may read and copy the
registration statement and any other documents we have filed at the Securities and
Exchange Commission, including any exhibits and schedules, at the Securities and Exchange
Commission&#146;s public reference room at 100 F Street N.E., Washington, D.C. 20549. You
may call the Securities and Exchange Commission at 1-800-SEC-0330 for further information
on this public reference room. As a foreign private issuer, all documents which were filed
after November 4, 2002 on the Securities and Exchange Commission&#146;s EDGAR system are
available for retrieval on the Securities and Exchange Commission&#146;s website at
www.sec.gov. These Securities and Exchange Commission filings are also available to the
public on the Israel Securities Authority&#146;s Magna website at www.magna.isa.gov.il and
from commercial document retrieval services. As a foreign private issuer we are not
required to file periodic information as frequently or as promptly as United States
companies, we generally do publicly announce our quarterly and year-end results promptly
and file periodic information with the SEC under cover of Form 6-K. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus is part of the registration statement and does not contain all of the
information included in the registration statement. Whenever a reference is made in this
prospectus to any of our contracts or other documents, the reference may not be complete
and, for a copy of the contract or document and a more complete description of the matter
involved, you should refer to the exhibits that are a part of the registration statement. </font></p>

<p align=center>
<font size=2>27</font></p>
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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Securities and Exchange Commission allows us to &#147;incorporate by reference&#148; into
this prospectus the information we file with it, which means that we can disclose
important information to you by referring you to those documents. Information incorporated
by reference is part of this prospectus. We incorporate by reference the documents listed
below and amendments to them. These documents and their amendments were previously filed
with the Securities and Exchange Commission. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus will be deemed to incorporate by reference the following documents previously
filed by us with the Securities and Exchange Commission: </font></p>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>Annual
report on Form 20-F for the year ended December 31, 2006, filed on May 30, 2007, to the
extent the information in that report has not been updated or superseded by this
prospectus; </font></td>
</tr>
</table><Br>


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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT size="2" face="Wingdings 2">&#151;</font> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>any
report on Form 6-K, or parts thereof, meeting the requirements of Form F-3 furnished to
the Securities and Exchange Commission after the date of the initial registration
statement and prior to its effectiveness, which states that it, or any part thereof, is
being incorporated by reference herein. </font></td>
</tr>
</table>
<br>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
prospectus shall also be deemed to incorporate by reference all subsequent annual reports
filed on Form 20-F, Form 40-F or Form 10-K, and all subsequent filings on Forms 10-Q and
8-K filed by the registrant pursuant to the Exchange Act, prior to the termination of the
offering made by this prospectus. We may incorporate by reference into this prospectus,
any Form 6-K meeting the requirements of Form F-3 which is furnished to the Securities and
Exchange Commission after the date of the filing of the registration statement being filed
in connection with this offering and before the date of termination of this offering. Any
such Form 6-K which we intend to so incorporate shall state in such form that it is being
incorporated by reference into this prospectus. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
will provide to each person, including any beneficial owner, to whom this prospectus is
delivered, a copy of these filings, at no cost, upon written or oral request to us at: 8
Hanagar Street, Kfar Sava, Israel, 44000, telephone: 972-9-764-4555. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
copy of this prospectus, our memorandum of association and our articles of association,
are available for inspection at our offices at 8 Hanagar Street, Kfar Sava, Israel, 44000
and on the Israel Securities Authority&#146;s Magna website, <U>www.magna.isa.gov.il</u>. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a foreign private issuer, we are exempt from the rules under Section 14 of the Exchange
Act prescribing the furnishing and content of proxy statements and our officers, directors
and principal shareholders are exempt from the reporting and other provisions in Section
16 of the Exchange Act. </font></p>

<p align=center>
<font size=2>28</font></p>
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<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><Img Src="logo.gif"></FONT></P>

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<P Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>1,104,687 Ordinary
Shares </font></p>

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<Hr Size="1" Noshade Width="15%" Align="Center">

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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>PROSPECTUS </font></h1>

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<Hr Size="1" Noshade Width="15%" Align="Center">
<Br>

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<td Width=15%>&nbsp;</td>
<td Width=85%><Font Face="Times New Roman, Times, Serif" Size=2>
You
should rely only on the information incorporated by reference or provided in this
prospectus. We have not authorized anyone to provide you with different information. We
are not making any offer to sell or buy any of the securities in any state where the
offer or sale is not permitted. You should not assume that the information in this
prospectus is accurate as of any date other than the date that appears below. </font></td>
</tr>
</table>
<br>

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<P Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>June___, 2007 </font></p>

<p align=center>
<font size=2>29</font></p>
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<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>PART II </font></h1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>INFORMATION NOT
REQUIRED IN PROSPECTUS </font></h1>

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<td Width=9%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ITEM 8.</B> </FONT> </td>
<td Width=3%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B></B> </FONT></td>
<td Width=88%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
INDEMNIFICATION OF DIRECTORS AND OFFICERS</B> </FONT> </td>
</tr>
</table>
<br>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Israeli Companies Law-1999, or the Companies Law, provides that a company may include in
its articles of association provisions allowing it to: </font></p>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>1.  </font></td>
<td Width=95%><Font Face="Times New Roman, Times, Serif" Size=2>partially
or fully, exempt in advance, an office holder of the company from his
                    responsibility for damages caused by the breach of his duty of care
to the                     company, except for damages caused to the Company due to any
breach of such                     Office Holder&#146;s duty of care towards the company
in a                     &#147;distribution&#148; (as defined in the Companies Law). </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>2.  </font></td>
<td Width=95%><Font Face="Times New Roman, Times, Serif" Size=2>enter
into a contract to insure the liability of an office holder of the company
                    by reason of acts or omissions committed in his capacity as an office
holder of                     the company with respect to the following: </font></td>
</tr>
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<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(a) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>the
breach of his duty of care to the company or any other person; </font></td>
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<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(b) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>the
breach of his fiduciary duty to the company to the extent he acted in good
               faith and had a reasonable basis to believe that the act or omission would
not                prejudice the interests of the company; and </font></td>
</tr>
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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(c) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>monetary
liabilities or obligations which may be imposed upon him in favor of                other
persons. </font></td>
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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>3.  </font></td>
<td Width=95%><Font Face="Times New Roman, Times, Serif" Size=2>indemnify
an office holder of the company for: </font></td>
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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(a) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>monetary
liabilities or obligations imposed upon, or actually incurred by, such
               officer holder in favor of other persons pursuant to a court judgment,
including                a compromise judgment or an arbitrator&#146;s decision approved
by a court, by                reason of acts or omissions of such officer holder in his
or her capacity as an                office holder of the company; </font></td>
</tr>
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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(b) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>reasonable
litigation expenses, including attorney&#146;s fees, actually                incurred by
such office holder or imposed upon him or her by a court, in an                action,
suit or proceeding brought against him or her by or on behalf of us or                by
other persons, or in connection with a criminal action from which he or she
               was acquitted, or in connection with a criminal action which does not
require                criminal intent in which he was convicted, in each case by reason
of acts or                omissions of such officer holder in his or her capacity as an
office holder; and </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>1</font></p>
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<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(c) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>reasonable
litigation expenses, including attorneys&#146; fees, actually                incurred by
such office holder due to an investigation or a proceeding                instituted
against such office holder by an authority competent to administrate                such
an investigation or proceeding, and that was finalized without the filing
               of an indictment against such office holder and without any financial
obligation                imposed on such office holder in lieu of criminal proceedings,
or that was                finalized without the filing of an indictment against such
office holder but                with financial obligation imposed on such office holder
in lieu of criminal                proceedings of a crime which does not require proof of
criminal intent, in each                case by reason of acts of such officer holder in
his or her capacity as an                office holder of the company. </font></td>
</tr>
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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Companies Law provides that a company&#146;s articles of association may provide for
indemnification of an office holder post-factum and may also provide that a company may
undertake to indemnify an office holder in advance, as described in: </font></p>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>i. </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>sub-section
3(a) above, provided such undertaking is limited to and actually                sets
forth the types of occurrences, which, in the opinion of the company&#146;s
               board of directors based on the current activity of the company, are, at
the                time such undertaking is provided, foreseeable, and to an amount and
degree that                the board of directors has determined is reasonable for such
indemnification                under the circumstances; and </font></td>
</tr>
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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>ii. </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>sub-sections
3(b) and 3(c) above. </font></td>
</tr>
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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Companies Law provides that a company may not indemnify or exempt the liabilities of an
office holder or enter into an insurance contract which would provide coverage for the
liability of an office holder with respect to the following: </font></p>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT FACE="Wingdings 2" SIZE="1">&#154;</FONT> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>a
breach of his fiduciary duty, except to the extent described above;</font></td>
</tr>
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<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT FACE="Wingdings 2" SIZE="1">&#154;</FONT> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>a
 breach  of his  duty of care,  if such  breach  was  done  intentionally,  recklessly
 or with               disregard of the circumstances of the breach or its consequences;</font></td>
</tr>
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<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT FACE="Wingdings 2" SIZE="1">&#154;</FONT> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>an
act or omission done with the intent to unlawfully realize personal gain; or</font></td>
</tr>
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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2><FONT FACE="Wingdings 2" SIZE="1">&#154;</FONT> </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>a
fine or monetary settlement imposed upon him.</font></td>
</tr>
</table>
<br>


<p align=center>
<font size=2>2</font></p>
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<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Companies Law, the term &#147;office holder&#148; may include a director, managing
director, general manager, chief executive officer, executive vice president, vice
president, other managers directly subordinate to the managing director and any other
person fulfilling or assuming any such position or responsibility without regard to such
person&#146;s title. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
grant of an exemption, an undertaking to indemnify or indemnification of, and procurement
of insurance coverage for, an office holder of a company requires, pursuant to the
Companies Law, the approval of our audit committee and board of directors, and, in certain
circumstances, including if the office holder is a director, the approval of our
shareholders. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have entered into an insurance contract for directors and officers and have procured
indemnification insurance for our office holders to the extent permitted by our Articles
of Association. Further to amendments to the Companies Law that came into effect in March
2005, which are described above, our Articles of Association would have to be amended to
allow for indemnification of, and procurement of insurance coverage for our officers and
directors to the maximum extent provided for by the Companies Law. </font></p>

<p align=center>
<font size=2>3</font></p>
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<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
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<td Width=9%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ITEM 9.</B> </FONT> </td>
<td Width=3%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B></B> </FONT></td>
<td Width=88%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
EXHIBITS</B> </FONT> </td>
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<Td Width="9%" Align="Center"> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Exhibit<Br><U>Numbers</U></B> </FONT> </td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><Br><U><B>Description of Document</B></U> </FONT> </td>
</tr>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            3.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Articles
of Association, adopted on February 1, 1994, filed by us as an Exhibit to our annual
report                              on Form 20-F for the fiscal year ended December 31,
2000, as filed with the Securities and Exchange                              Commission
on June 30, 2001, and incorporated herein by reference (other than Article 122). </font></td>
</tr>
</table>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            3.2  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Article
122 of our Articles of Association as amended on January 7, 2004, filed by us as an
Exhibit to                              our annual report on Form 20-F for the fiscal
year ended December 31, 2003, as filed with the                              Securities
and Exchange Commission on June 30, 2004, and incorporated herein by reference. </font></td>
</tr>
</table>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Securities Purchase Agreement, dated May 3, 2007, by and among Silicom Ltd. and the
investors                              identified therein (the "Investors").* </font></td>
</tr>
</table>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.2  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Securities Purchase Agreement, dated May 3, 2007, by and among Silicom Ltd. and CD
Investment                              Partners, Ltd.* </font></td>
</tr>
</table>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.3  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Warrant between Silicom Ltd. and the Investors.* </font></td>
</tr>
</table>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.4  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Warrant between Silicom Ltd. and CD Investment Partners, Ltd.* </font></td>
</tr>
</table>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.5  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Disclosure
Schedules to the Securities Purchase Agreements.* </font></td>
</tr>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            5.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Opinion
of Yigal Arnon &amp; Co. </font></td>
</tr>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>           23.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Consent
of Yigal Arnon &amp; Co. (contained in their opinion constituting Exhibit 5.1). </font></td>
</tr>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>           23.2  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Consent
of Somekh Chaikin, a Member Firm of KPMG International. </font></td>
</tr>
</table>
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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>           24.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Power
of Attorney (set forth on signature page). </font></td>
</tr>
</table>
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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>* </font></td>
<td Width=95%><Font Face="Times New Roman, Times, Serif" Size=2>Incorporated
by reference to our Report on Form 6-K dated May 2007 (furnished to the Securities and
Exchange Commission on May 7, 2007). </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>4</font></p>
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<td Width=9%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ITEM 10.</B> </FONT> </td>
<td Width=3%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B></B> </FONT></td>
<td Width=88%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
UNDERTAKINGS</B> </FONT> </td>
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     <P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The undersigned Registrant hereby undertakes: </font></p>

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<td Width=95%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file, during any period in which offers or sales are being made, a
          post-effective amendment to this Registration Statement:  </font></p></td>
</tr>
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<td Width=90%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any prospectus required by Section 10(a)(3) of the Securities Act of
          1933;  </font></p></td>
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<td Width=90%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
reflect in the prospectus any facts or events arising after the effective           date
of this Registration Statement (or the most recent post-effective amendment
          hereof) which, individually or in the aggregate, represent a fundamental change
          in the information set forth in this Registration Statement. Notwithstanding
the           foregoing, any increase or decrease in volume of securities offered (if the
          total dollar value of securities offered would not exceed that which was
          registered) and any deviation from the low or high end of the estimated maximum
          offering range may be reflected in the form of prospectus filed with the
          Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
          and price represent no more than a 20% change in the maximum aggregate offering
          price set forth in the &#147;Calculation of Registration Fee&#148; table in the
          effective registration statement; and  </font></p></td>
</tr>
</table>
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<td Width=90%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
include any material information with respect to the plan of distribution           not
previously disclosed in this Registration Statement or any material change           to
such information in this Registration Statement;  </font></p></td>
</tr>
</table>
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<P><Font Face="Times New Roman, Times, Serif" Size=2>provided, however, that paragraphs
(a)(1)(i), (a)(1)(ii)&nbsp;and (a)(1)(iii) do not apply if the information required to be
included in a post-effective amendment by those paragraphs is contained in periodic
reports filed with or furnished to the Commission by the Registrant pursuant to Section 13
or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference
in this Registration Statement, or is contained in a form of prospectus filed pursuant to
Rule 424(b) that is part of the registration statement. </font></p>

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<td Align=RIGHT Width=5%></td>
<td Width=95%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining any liability under the Securities Act of           1933,
each such post-effective amendment shall be deemed to be a new           registration
statement relating to the securities offered herein, and the           offering of such
securities at that time shall be deemed to be the initial bona           fide offering
thereof.  </font></p></td>
</tr>
</table>
<br>

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<td Align=RIGHT Width=5%></td>
<td Width=95%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
remove from registration by means of a post-effective amendment any of the
          securities being registered which remain unsold at the termination of the
          offering.  </font></p></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0>
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<td Align=RIGHT Width=5%></td>
<td Width=95%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
file a post-effective amendment to the Registration Statement to include any
          financial statements required by item 8.A. of Form 20-F at the start of any
          delayed offering or throughout a continuous offering. Financial statements and
          information otherwise required by Section 10(a)(3) of the Act need not be
          furnished, <I>provided</i>, that the Registrant includes in the prospectus, by
          means of a post-effective amendment, financial statements required pursuant to
          this paragraph (a)(4) and other information necessary to ensure that all other
          information in the prospectus is at least as current as the date of those
          financial statements. Notwithstanding the foregoing, with respect to
          Registration Statements on Form F-3, a post-effective amendment need not be
          filed to include financial statements and information required by Section
          10(a)(3) of the Act or rule 3-19 of Regulation S-X if such financial statements
          and information are contained in periodic reports filed with or furnished to
the           Commission by the Registrant pursuant to Section 13 or Section 15(d) of the
          Securities Exchange Act of 1934 that are incorporated by reference in the Form
          F-3.  </font></p></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>5</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<td Align=RIGHT Width=5%></td>
<td Width=95%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(5) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability under the Securities Act of 1933           to
any purchaser:  </font></p></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=10%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>i. </font></td>
<td Width=85%><Font Face="Times New Roman, Times, Serif" Size=2>If
the registrant is relying on Rule 430B (230.430B of this chapter):  </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=15%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>A. </font></td>
<td Width=80%><Font Face="Times New Roman, Times, Serif" Size=2>Each
prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be
               deemed to be part of the registration statement as of the date the filed
               prospectus was deemed part of and included in the registration statement;
and  </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=15%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>B. </font></td>
<td Width=80%><Font Face="Times New Roman, Times, Serif" Size=2>Each
prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or
               (b)(7) as part of a registration statement in reliance on Rule 430B
relating to                an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x)
for the purpose of                providing the information required by section 10(a) of
the Securities Act of                1933 shall be deemed to be part of and included in
the registration statement as                of the earlier of the date such form of
prospectus is first used after                effectiveness or the date of the first
contract of sale of securities in the                offering described in the
prospectus. As provided in Rule 430B, for liability                purposes of the issuer
and any person that is at that date an underwriter, such                date shall be
deemed to be a new effective date of the registration statement                relating
to the securities in the registration statement to which that                prospectus
relates, and the offering of such securities at that time shall be                deemed
to be the initial bona fide offering thereof. Provided, however, that no
               statement made in a registration statement or prospectus that is part of
the                registration statement or made in a document incorporated or deemed
incorporated                by reference into the registration statement or prospectus
that is part of the                registration statement will, as to a purchaser with a
time of contract of sale                prior to such effective date, supersede or modify
any statement that was made in                the registration statement or prospectus
that was part of the registration                statement or made in any such document
immediately prior to such effective date;                or  </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>6</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=10%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>ii. </font></td>
<td Width=85%><Font Face="Times New Roman, Times, Serif" Size=2>If
the registrant is subject to Rule 430C, each prospectus filed pursuant to
               Rule 424(b) as part of a registration statement relating to an offering,
other                than registration statements relying on Rule 430B or other than
prospectuses                filed in reliance on Rule 430A, shall be deemed to be part of
and included in                the registration statement as of the date it is first used
after effectiveness.                Provided, however, that no statement made in a
registration statement or                prospectus that is part of the registration
statement or made in a document                incorporated or deemed incorporated by
reference into the registration statement                or prospectus that is part of
the registration statement will, as to a purchaser                with a time of contract
of sale prior to such first use, supersede or modify any                statement that
was made in the registration statement or prospectus that was                part of the
registration statement or made in any such document immediately                prior to
such date of first use.  </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0>
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<td Align=RIGHT Width=5%></td>
<td Width=95%><P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(6) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That,
for the purpose of determining liability of the registrant under the           Securities
Act of 1933 to any purchaser in the initial distribution of the           securities: The
undersigned registrant undertakes that in a primary offering of           securities of
the undersigned registrant pursuant to this registration           statement, regardless
of the underwriting method used to sell the securities to           the purchaser, if the
securities are offered or sold to such purchaser by means           of any of the
following communications, the undersigned registrant will be a           seller to the
purchaser and will be considered to offer or sell such securities           to such
purchaser:  </font></p></td>
</tr>
</table>
<br>

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<td Width=10%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>i. </font></td>
<td Width=85%><Font Face="Times New Roman, Times, Serif" Size=2>Any
preliminary prospectus or prospectus of the undersigned registrant relating
               to the offering required to be filed pursuant to Rule 424;  </font></td>
</tr>
</table>
<br>

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<td Width=10%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>ii. </font></td>
<td Width=85%><Font Face="Times New Roman, Times, Serif" Size=2>Any
free writing prospectus relating to the offering prepared by or on behalf of
               the undersigned registrant or used or referred to by the undersigned
registrant;  </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=10%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>iii. </font></td>
<td Width=85%><Font Face="Times New Roman, Times, Serif" Size=2>The
portion of any other free writing prospectus relating to the offering
               containing material information about the undersigned registrant or its
               securities provided by or on behalf of the undersigned registrant; and  </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=10%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>iv. </font></td>
<td Width=85%><Font Face="Times New Roman, Times, Serif" Size=2>Any
other communication that is an offer in the offering made by the undersigned
               registrant to the purchaser.  </font></td>
</tr>
</table>
<br>

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     <P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The undersigned Registrant hereby undertakes that, for purposes of determining
          any liability under the Securities Act of 1933, each filing of the
          Registrant&#146;s annual reports pursuant to Section 13(a) or Section 15(d) of
          the Securities Exchange Act of 1934 (and, where applicable, each filing of an
          employee benefit plan&#146;s annual report pursuant to Section 15(d) of the
          Securities Exchange Act of 1934) that is incorporated by reference in this
          Registration Statement shall be deemed to be a new registration statement
          relating to the securities offered therein, and the offering of such securities
          at that time shall be deemed to be the initial bona fide offering thereof. </font></p>

<p align=center>
<font size=2>7</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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     <P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Insofar as indemnification for liabilities arising under the Securities Act of
          1933 may be permitted to directors, officers and controlling persons of the
          Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
          has been advised that in the opinion of the Securities and Exchange Commission
          such indemnification is against public policy as expressed in the Act and is,
          therefore, unenforceable. In the event that a claim for indemnification against
          such liabilities (other than the payment by the Registrant of expenses incurred
          or paid by a director, officer or controlling person of the Registrant in the
          successful defense of any action, suit or proceeding) is asserted by such
          director, officer or controlling person in connection with the securities being
          registered, the Registrant will, unless in the opinion of its counsel the matter
          has been settled by controlling precedent, submit to a court of appropriate
          jurisdiction the question whether such indemnification by it is against public
          policy as expressed in such Act and will be governed by the final adjudication
          of such issue. </font></p>

<p align=center>
<font size=2>8</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>


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<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>SIGNATURES </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, the Registrant certifies that it has
reasonable grounds to believe that it meets all of the requirements for filing on Form F-3
and has duly caused this Registration Statement on Form F-3 to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Kfar Sava, Israel, on June 7,
2007. </font></p>


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<td Width=40%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=60%><Font Face="Times New Roman, Times, Serif" Size=2><B>SILICOM LTD.</b><Br><Br>
<br>By: /s/ Shaike Orbach<br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Shaike Orbach<br>Director, President and Chief Executive Officer</font></td>
</tr>
</table>
<br>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>POWER OF ATTORNEY </font></h1>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW
ALL MEN BY THESE PRESENTS, each director and officer whose signature appears below
constitutes and appoints, Shaike Orbach, Avi Eizenman, Eran Gilad or any of them, his true
and lawful attorney-in-fact and agent, with full power of substitution and
re-substitution, to sign in any and all capacities any and all amendments or
post-effective amendments to this registration statement on Form F-3 and to file the same
with all exhibits thereto and other documents in connection therewith with the Securities
Exchange Commission, granting such attorneys-in-fact and agents, and each of them, full
power and authority to do all such other acts and execute all such other documents as
they, or any of them, may deem necessary or desirable in connection with the foregoing, as
fully as the undersigned might or could do in person, hereby ratifying and confirming all
that such attorneys-in-fact and agents, or any of them, may lawfully do or cause to be
done by virtue hereof. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the dates indicated: </font></p>



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<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Signature</U></B> </FONT> </td>
<Td Width="33%" Valign="Top"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Title</U></B> </FONT> </td>
<Td Width="33%" Valign="Top"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>Date</U></B> </FONT> </td>
</tr>
</table>
<br>





<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><Font Face="Times New Roman, Times, Serif" Size=2> /s/ Avi Eizenman   <br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Avi Eizenman   </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>Chairman of the Board     </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>June 7, 2007</font></td>
</tr>
</table>
<br>

<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><Font Face="Times New Roman, Times, Serif" Size=2> /s/ Shaike Orbach <br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Shaike Orbach </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>Director, President and Chief<Br> Executive Officer <Br>
(Principal Executive Officer)</font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>June 7, 2007</font></td>
</tr>
</table>
<br>


<p align=center>
<font size=2>9</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>





<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><Font Face="Times New Roman, Times, Serif" Size=2> /s/ Eran Gilad   <br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Eran Gilad   </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>Chief Financial Officer<Br>(Principal Financial Officer and
<Br>Principal Accounting Officer) </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>June 7, 2007</font></td>
</tr>
</table>
<br>



<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><Font Face="Times New Roman, Times, Serif" Size=2> /s/ Yehuda Zisapel  <br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Yehuda Zisapel  </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>Director </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>June 7, 2007</font></td>
</tr>
</table>
<br>

<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><Font Face="Times New Roman, Times, Serif" Size=2> /s/ Ilan Kalmanovich <br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Ilan Kalmanovich </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>Director  </font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>June 7, 2007</font></td>
</tr>
</table>
<br>


<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><Font Face="Times New Roman, Times, Serif" Size=2> /s/ Einat Domb-Har<br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Einat Domb-Har</font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>Director</font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>June 7, 2007</font></td>
</tr>
</table>
<br>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
<Br>Silicom Connectivity Solutions, Inc.</FONT></P>



<Table Width=100% Cellspacing=0 Cellpadding=0 Border=0>
<tr Valign=TOP>
<td Width=34%><Font Face="Times New Roman, Times, Serif" Size=2>By: /s/ Avi Eizenman<br>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
Avi Eizenman</font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<Td Width="33%" Valign="Top"><Font Face="Times New Roman, Times, Serif" Size=2>June 7, 2007</font></td>
</tr>
</table>
<br>


<p align=center>
<font size=2>10</font></p>
<HR SIZE="1" NOSHADE  STYLE="margin-top: -2px">
<HR SIZE="4" NOSHADE  STYLE="margin-top: -10px">
<P STYLE="page-break-after:always"></P>





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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"> <FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Exhibit<Br><U>Numbers</U></B> </FONT> </td>
<td Width=3%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B></B> </FONT></td>
<Td Width="88%" Valign="Bottom"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><U>
Description of Document</U></B> </FONT> </td>
</tr>
</table>
<br>


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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            3.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Articles
of Association, adopted on February 1, 1994, filed by us as an Exhibit to our annual
report                              on Form 20-F for the fiscal year ended December 31,
2000, as filed with the Securities and Exchange                              Commission
on June 30, 2001, and incorporated herein by reference (other than Article 122). </font></td>
</tr>
</table>
<br>

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<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            3.2  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Article
122 of our Articles of Association as amended on January 7, 2004, filed by us as an
Exhibit to                              our annual report on Form 20-F for the fiscal
year ended December 31, 2003, as filed with the                              Securities
and Exchange Commission on June 30, 2004, and incorporated herein by reference. </font></td>
</tr>
</table>
<br>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
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<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Securities Purchase Agreement, dated May 3, 2007, by and among Silicom Ltd. and the
investors                              identified therein (the "Investors").* </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.2  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Securities Purchase Agreement, dated May 3, 2007, by and among Silicom Ltd. and CD
Investment                              Partners, Ltd.* </font></td>
</tr>
</table>
<br>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.3  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Warrant between Silicom Ltd. and the Investors.* </font></td>
</tr>
</table>
<br>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.4  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Form
of Warrant between Silicom Ltd. and CD Investment Partners, Ltd.* </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            4.5  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Disclosure
Schedules to the Securities Purchase Agreements.* </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>            5.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Opinion
of Yigal Arnon &amp; Co. </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>           23.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Consent
of Yigal Arnon &amp; Co. (contained in their opinion constituting Exhibit 5.1). </font></td>
</tr>
</table>
<br>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>           23.2  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Consent
of Somekh Chaikin, a Member Firm of KPMG International. </font></td>
</tr>
</table>
<br>

<!-- MARKER FORMAT-SHEET="Exhibit Index Hang" FSL="Workstation" -->
<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<Td Width="9%" Align="Center"><Font Face="Times New Roman, Times, Serif" Size=2>           24.1  </font></td>
<td Width=3%><Font Face="Times New Roman, Times, Serif" Size=2></font></td>
<td Width=88%><Font Face="Times New Roman, Times, Serif" Size=2>Power
of Attorney (set forth on signature page). </font></td>
</tr>
</table>
<br>



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<Hr Size=1 Noshade Width=15% Align=LEFT>

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<Table Width=100% Cellpadding=0 Cellspacing=0 Border=0>
<tr Valign=TOP>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>*</font></td>
<td Width=95%><Font Face="Times New Roman, Times, Serif" Size=2>
Incorporated by reference to our Report on Form 6-K dated May 2007 (furnished to the
Securities and Exchange Commission on May 7, 2007). </font></td>
</tr>
</table>
<br>

<p align=center>
<font size=2>11</font></p>
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<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>3
<FILENAME>exhibit_5-1.htm
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<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        \\Backup\office\EDGAR Filing\Silicom Ltd\73856\a73856.eep        -->
     <!-- Control Number: 73856                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Silicom Ltd                                                      -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
     <TITLE>F-3</TITLE>
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<P Align="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 5.1</B></U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>YIGAL ARNON &amp; CO. </font></h1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>ADVOCATES AND NOTARY </font></p>

<P Align="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Tel Aviv</B>&nbsp;&nbsp;&nbsp;&nbsp; June 7, 2007 </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman"></FONT></TH>
     <TH><FONT FACE="Times New Roman"></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=10% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Direct Dial:</FONT></TD>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>972-608-7856</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Direct Fax:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>972-608-7714</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>E-mail:</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>davids@arnon.co.il</FONT></TD></TR>
</TABLE>
<Br>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Silicom Ltd.
<Br>8 Hanagar Street
<Br>Kfar Sava, 44000
<Br>ISRAEL</FONT></P>




<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>Dear Sir and Madam: </font></p>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have acted as Israeli counsel to Silicom Ltd. (the &#147;Company&#148;), a corporation
organized under the laws of the State of Israel. As such, we have participated in the
preparation of the Company&#146;s registration statement on Form F-3 (the
&#147;Registration Statement&#148;) relating to the registration under the United States
Securities Act of 1933, as amended, of the offering for resale by certain selling
stockholders of (i) up to 875,000 ordinary shares of the Company, par value of 0.01 NIS
each (the &#147;Shares&#148;), and (ii) up to 229,687 ordinary shares issuable upon
exercise of warrants (the &#147;Warrants&#148;) by the selling stockholders (the
&#147;Warrant Shares&#148;). </font></p>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
counsel to the Company in Israel, we have examined such corporate records, documents,
agreements and such matters of law as we have considered necessary or appropriate for the
purpose of rendering this opinion. Upon the basis of such examination, we advise you that
in our opinion: </font></p>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(i) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>The
Shares, when issued, were duly authorized and validly issued, fully paid and
                    nonassessable. </font></td>
</tr>
</table>
<br>

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<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;</font></td>
<td Width=5%><Font Face="Times New Roman, Times, Serif" Size=2>(ii) </font></td>
<td Width=90%><Font Face="Times New Roman, Times, Serif" Size=2>The
Warrant Shares, when paid for and issued in accordance with the terms and
                    conditions of the Warrants, will be duly authorized, validly issued,
fully paid                     and nonassessable. </font></td>
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<br>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are members of the Israel Bar, and the opinions expressed herein are limited to questions
arising under the laws of the State of Israel, and we disclaim any opinion whatsoever with
respect to matters governed by the laws of any other jurisdiction. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
consent to the reference to this firm under the caption &#147;Legal Matters&#148; in the
Registration Statement, and we consent to the filing of this opinion as an exhibit to the
Registration Statement. </font></p>





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Sincerely,
<Br>
<Br>
<Br>Yigal Arnon &amp; Co.</font></td></tr>
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<Br>


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<TYPE>EX-23.2
<SEQUENCE>4
<FILENAME>exhibit_23-2.htm
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     <!-- Control Number: 73856                                                            -->
     <!-- Rev Number:     1                                                                -->
     <!-- Client Name:    Silicom Ltd                                                      -->
     <!-- Project Name:   F-3                                                              -->
     <!-- Firm Name:      Zadok-Keinan Ltd                                                 -->
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<H1 Align="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Exhibit 23.2</B></U> </FONT> </h1>

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<H1 Align=LEFT><Font Face="Times New Roman, Times, Serif" Size=2>CONSENT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM </font></h1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P Align="Left"><Font Face="Times New Roman, Times, Serif" Size=2>The Board of Directors
and Shareholders of Silicom Ltd.: </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>We consent to the use of our report
dated May 29, 2007, with respect to the consolidated balance sheets of Silicom Ltd. and
its subsidiary as of December 31, 2006 and 2005, and the related consolidated statements
of income, changes in shareholders&#146; equity and cash flows for each of the years in
the three-year period ended December 31, 2006, incorporated herein by reference, which
report appears in the annual report on Form 20-F for the year ended December 31, 2006 of
Silicom Ltd., filed with the Securities and Exchange Commission on May 30, 2007, and to
the reference to our firm under the heading &#147;Experts&#148; in the prospectus. </font></p>

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<P><Font Face="Times New Roman, Times, Serif" Size=2>Our report refers to a change in the
method of accounting for share-based compensation upon adoption of Financial Accounting
Standards Board Statement 123(R), &#147;Share-Based Payment&#148;. </font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Somekh Chaikin
<Br>
<Br>Somekh Chaikin
<Br>Certified Public Accountants (Isr.)
<Br>A Member Firm of KPMG International

<Br>
<Br>Tel Aviv, Israel
<Br>June 7, 2007
</FONT></P>

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