Mellanox Technologies Completes Acquisition of EZchip

Mellanox Technologies Completes Acquisition of EZchip

Expands addressable market by 20% Accretive to earnings per share from day one Combines highly successful engineering teams, technologies, and products

SUNNYVALE, CA and YOKNEAM, ISRAEL - February 23, 2016 - Mellanox(r) Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of end-to-end interconnect solutions for servers and storage systems, today announced that it completed the acquisition of EZchip (NASDAQ: EZCH; TASE: EZCH), a leader in high-performance processing solutions for carrier and data center networks, at a total purchase price of approximately $811 million (approximately $606 million net of cash).

Effective today, each outstanding share of EZchip ordinary shares shall be deemed to have been transferred to Mellanox, entitling the holder thereof to receive $25.50 in cash without interest and less any applicable withholding taxes. Following the merger, EZchip shares ceased to be traded on the NASDAQ and Tel-Aviv Stock Exchanges.

The EZchip acquisition is a further step in Mellanox's strategy to become the leading broad-line supplier of intelligent interconnect solutions for the data center. The combined company will deliver diverse and robust solutions, enabling customers to meet growing demands of data-intensive applications used in high-performance computing, Web 2.0, cloud, network security, data center, enterprise, telecom, database, financial services and storage environments.

"As our largest ever acquisition, we are confident the integrated teams of EZchip and Mellanox can deliver future value to our shareholders," said Eyal Waldman, President and CEO of Mellanox. "We look forward to working together as a combined company building a leading intelligent, end-to-end interconnect, and network processing company. This will enable Mellanox to add intelligence, and application offloads to the interconnect, which is a trend we are seeing in data centers, and expect to take dominant share in this transition."

In connection with the transaction, J.P. Morgan Securities LLC acted as exclusive financial adviser, and provided a financing commitment to Mellanox, and Herzog Fox & Neeman and Latham & Watkins LLP acted as Mellanox's legal counsel.

Updated First Quarter 2016 Guidance (Including 5-weeks of EZchip contribution) We currently project:

• Quarterly revenues of $190 million to $195 million
• Non-GAAP gross margins of 71 percent to 72 percent
• An increase in non-GAAP operating expenses of 8 percent to 10 percent
• Share-based compensation expense of $13.8 million to $14.3 million
• Non-GAAP diluted share count of 48.7 million to 49.2 million shares.

Conference Call Mellanox will conduct a conference call at 8:00 a.m. Eastern Time, Tuesday, February 23, 2016. To listen to the call, participants can dial +1-888-632-3384 approximately ten minutes prior to the start time. A webcast of the live and archived call will be available on the investor relations section of the Mellanox website at http://ir.mellanox.comhttp://ir.mellanox.com/.

About Mellanox Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet intelligent interconnect solutions and services for servers and storage. Mellanox intelligent interconnect and processing solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability. Mellanox offers a choice of fast interconnect products: adapters, switches, software, cables and silicon that accelerate application runtime and maximize business results for a wide range of markets including high-performance computing, enterprise data centers, Web 2.0, cloud, storage, telecom and financial services. More information is available at www.mellanox.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements, statements related to the accretivness of the transaction. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "projects," "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include the continued expansion of our product line, customer base and the total available market of our products, the continued growth in demand for our products, the continued, increased demand for industry standards-based technology, our ability to react to trends and challenges in our business and the markets in which we operate, our ability to anticipate market needs or develop new or enhanced products to meet those needs, the adoption rate of our products, our ability to establish and maintain successful relationships with our OEM partners, our ability to effectively compete in our industry, fluctuations in demand, sales cycles and prices for our products and services, our success converting design wins to revenue-generating product shipments, the continued launch and volume ramp of large customer sales opportunities, and our ability to protect our intellectual property rights. Furthermore, the majority of our quarterly revenues are derived from customer orders received and fulfilled in the same quarterly period. We have limited visibility into actual end-user demand as such demand impacts us and our OEM customer inventory balances in any given quarter. Consequently, this introduces risk and uncertainty into our revenue and production forecasts and business planning and could negatively impact our financial results. In addition, current uncertainty in the global economic environment poses a risk to the overall economy as businesses may defer purchases in response to tighter credit conditions, changing overall demand for our products, and negative financial news. Consequently, our results could differ materially from our prior results due to these general economic and market conditions, political events and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about the risks, uncertainties and assumptions that may impact our business is set forth in our Form 10-Q filed with the SEC on October 30, 2015, and our annual report on Form 10-K filed with the SEC on March 2, 2015. All forward-looking statements in this press release, including the guidance for the three months ended March 31, 2016, are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Mellanox is a registered trademark of Mellanox Technologies, Ltd. All other trademarks are property of their respective owners.

Mellanox Technologies, Ltd Partnering with Hewlett Packard Enterprise to Boost NFV and Telco Network Performance

Mellanox Technologies, Ltd Partnering with Hewlett Packard Enterprise to Boost NFV and Telco Network Performance

Record-setting 33 Mpps DPDK Packet Rate Achieved with ConnectX(r)-4 Lx 25Gb/s Ethernet NIC

MOBILE WORLD CONGRESS 2016, BARCELONA, SPAIN - February 22, 2016 - Mellanox(r) Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of high-performance, end-to-end interconnect solutions for data center servers and storage systems, today announced an extended partnership with Hewlett Packard Enterprise (HPE). Mellanox is working simultaneously at its own NFV benchmarking facility as well as with HPE and their NFV Infrastructure lab to optimize the Mellanox ConnectX(r)-4 Lx series of Ethernet adapters on HPE servers. In the Mellanox NFV benchmarking facility the ConnectX(r)-4 Lx Ethernet adapter with Mellanox DPDK Poll Mode Driver (PMD) has demonstrated near line rate packet processing performance of 33 million packets per second per 25Gb/s port, with zero packet loss, running in HPE's ProLiant series of server platforms.

The quest for higher I/O bandwidth and network performance continues to mount as businesses and organizations accelerate their digital transformation and rapidly deploy new virtual services and solutions. This is especially true for Communication Service Providers (CSPs) who are moving NFV from concept to deployment. CSP's must make sure their underlying network infrastructure has enough data packet processing throughput to maintain the Quality of Service their Subscribers expect today. These factors have made 25G Ethernet with high packet handling performance and low processing overhead an attractive option.

Mellanox along with other promoters and hyperscale data center leaders came together to form the 25G Ethernet Consortium (http://25gethernet.org/) to define the specification for interoperable 25/50G products. More than 40 consortium member companies have developed products based on the de facto industry standard, and today 25G is poised to experience the most rapid adoption of any previous Ethernet networking speed. Mellanox is the first to market with a 25/50/100Gb/s end-to-end Ethernet family of products including: Spectrum switches, ConnectX-4/4Lx adapters, and LinkX cables. ConnectX-4 Lx 25G Ethernet NICs have been proven to deliver near line rate packet processing performance of 33 million packets per second at zero packet loss, making it an ideal choice for NFV and cloud deployment.

In addition, Mellanox is an active contributor to the Open Compute Project (OCP), bringing 10/25G and 40/50/100G end-to-end interconnect Ethernet designs to the OCP community. These advanced adapter, switch, and interconnect Ethernet products are ideal for CSPs to free their networks to unlock performance, unleash innovation, and enable open platforms that deliver the highest performance, reliability and efficiency and avoid vendor lock in.

"Mellanox is a company that is built on relentless pursuit of network performance and infrastructure efficiency through innovation in silicon design, software development, and active engagement in standard bodies and industry associations. Our end-to-end 25Gb/s Ethernet interconnect portfolio, and a full suite of virtual switching acceleration and offloading capabilities, eliminate the performance bottlenecks normally associated with deploying NFV solutions." said Kevin Deierling, vice president of marketing at Mellanox Technologies. "Moreover, these groundbreaking performance numbers are achieved through full virtual switch offload on the adapter, resulting in minimal impact on valuable CPU and memory resources, empowering NFV platforms to do what they are supposed to do - perform service and application processing, rather than handling packet I/O."

"As CSPs deploy NFV in production, they need to ensure their NFV Infrastructure (NFVI) is reliable and can continue to deliver the quality of service their subscribers demand. One aspect of this is making sure their NFVI has the data packet processing performance required to support the service traffic." said Claus Pedersen, Director of NFV and Telecommunication Segment, HPE Servers. "The HPE Telco NFV Infrastructure lab has worked closely with Mellanox to ensure that Mellanox ConnectX-4 Lx 25Gb/s running on HPE ProLiant servers will enable our CSP customers to achieve the scale, reliability and efficiency they require of their NFV deployments."

Supporting Resources:

• Learn more about ConnectX-4 Lxhttp://www.mellanox.com/page/products_dyn?product_family=219&mtag=connectx_4_lx_en_card

• Learn more about Mellanox's 10/25GbEhttp://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.mellanox.com%2Fethernet%2F&esheet=51002445&newsitemid=20141216005035&lan=en-US&anchor=10GbE&index=2&md5=d33c44181668027f84c1c3bdf711a27a interconnect solutions

• Learn more about Mellanox's NFV solutionshttp://www.mellanox.com/solutions/cloud/nfv/

• Follow Mellanox on Twitterhttps://twitter.com/mellanoxtech, Facebookhttps://www.facebook.com/MellanoxTech, Google+https://plus.google.com/+mellanox#+mellanox/posts, LinkedInhttp://www.linkedin.com/groups?home=&gid=2615229&trk=anet_ug_hm, and YouTubehttp://www.youtube.com/mellanox

• Mobile World Congress: Stop by and meet with us at the Mellanox booth 5K29 - Hall 5

• Blog: NFV-Superchargedhttp://www.mellanox.com/blog/2016/02/nfv-supercharged-get-inspired-learn-how-with-mellanox-at-mwc16

• Join the Mellanox Communityhttp://community.mellanox.com/welcome

About Mellanox Mellanox Technologies is a leading supplier of end-to-end InfiniBand and Ethernet interconnect solutions and services for servers and storage. Mellanox interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability. Mellanox offers a choice of fast interconnect products: adapters, switches, software, cables and silicon that accelerate application runtime and maximize business results for a wide range of markets including high-performance computing, enterprise data centers, Web 2.0, cloud, storage and financial services. More information is available at http://www.mellanox.com.

Mellanox, ConnectX, SwitchX, and Virtual Protocol Interconnect are registered trademarks of Mellanox Technologies, Ltd. All other trademarks are property of their respective owners.

Allyson

European Supercomputer Center (VSC) Selects Mellanox’s End-to-End EDR 100Gb/s InfiniBand Solution to Further Science and Medical Research

European Supercomputer Center (VSC) Selects Mellanox’s End-to-End EDR 100Gb/s InfiniBand Solution to Further Science and Medical Research Pursue Advanced Scientific Research and Modeling with Leading Complete End-to-End EDR 100Gb/s InfiniBand System in Belgium

SUNNYVALE, CA and YOKNEAM, ISRAEL – February 17, 2016 – Mellanox® Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of high-performance, end-to-end interconnect solutions for data center servers and storage systems, today announced that the Flemish Supercomputer Center (VSC) in Belgium, has selected Mellanox’s end-to-end 100Gb/s EDR interconnect solutions to be integrated into a new LX-series supercomputer that is to be supplied by NEC Corporation. The system, which will be the fastest supercomputer (Tier-1) and the first complete end-to-end EDR 100Gb/s InfiniBand system in Belgium, is another example of the increasing global adoption of EDR InfiniBand technology.

“The scientific community at VSC is performing critical studies into environmental sustainability, atmospheric modeling, researching of new materials, and medical research,” said Ingrid Barcena Roig, Tier 1 project leader, VSC at KU Leuven. “This new supercomputer will provide one of the most progressive global infrastructures to date, empowering researchers to explore and analyze some of the greatest challenges facing science today. The Mellanox EDR 100Gb/s InfiniBand solution will make it possible for the center to expand this vital research and produce potentially life-changing results much faster than ever before.”

The supercomputer will be ranked among the top 150 fastest supercomputers in the world with a peak performance of 623 Teraflops. The infrastructure will support scientific research into renewable energy sources, the development of new medicines, and advanced climate modeling on both Earth and other planets. The complete system is scheduled to be installed in March 2016 and will be financed by the Flemish Minister for Science and Innovation in Belgium.

“NEC is proud to be involved in this project with VSC and provide the center with a next generation supercomputer,” said Bruno Lecointe, senior sales manager, western Europe, NEC Deutschland GmbH. “NEC is very passionate about being a partner in scientific research and helping researchers achieve the level of high sustained performance needed for potentially life-changing discoveries to be made. NEC worked closely with both Mellanox and VSC when developing this supercomputer to ensure we understood the challenges the center faced and that we were able to deliver a customized system that was exactly what they needed to achieve their unique goals.”

“Mellanox is thrilled to contribute to a project that will accelerate scientific discovery and has the capability to solve some of the top problems plaguing scientists and researchers today,” said Gilad Shainer, vice president of marketing, Mellanox Technologies. “This new supercomputer will position the university to make discoveries critical for the continuous advancement of science. VSC selected Mellanox for the performance levels only EDR 100Gb/s InfiniBand can deliver and is a prime example of the growing global demand for intelligent, fast, highly reliable, and cost efficient interconnect technology.”

For more information about the Flemish Supercomputer Center in Belgium, please visit: https://www.vscentrum.be/.

Allyson

---

Allyson Scott Account Supervisor

[cid:image001.gif@01C8E020.BD30DAD0]

333 W. San Carlos Street #900 San Jose, CA 95110

[cid:image002.jpg@01C8E020.BD30DAD0] (408) 727-0351 ext 784 [cid:image004.jpg@01C8E020.BD30DAD0] (408) 885-9317 fax

www.mcgrathpower.comhttp://www.mcgrathpower.com/ | Pass the Michttp://www.mcgrathpower.com/blog/ | Twitterhttps://twitter.com/mcgrathpowerpr | Facebookhttp://www.facebook.com/pages/San-Jose-CA/McGrathPower-Public-Relations-and-Communications/63116841459 | LinkedInhttps://www.linkedin.com/company/mcgrathpower-public-relations?trk=biz-companies-cym

Partner Agency, The Worldcom Group

CONFIDENTIALITY: The information contained in this email message is intended for the personal and confidential use of the designated recipient(s) named above. This message is intended to be a confidential communication and may involve information or material which is protected under State or Federal privacy laws. If the reader of this message is not the intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that you have received this document in error and that any review, dissemination, distribution or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately by phone and return this message to us via email.

Zycko Deploys VM Aware Storage Solution from Mellanox and Tintri for Private Cloud Data Center

Zycko Deploys VM Aware Storage Solution from Mellanox and Tintri for Private Cloud Data Center IT Solutions Provider Leverages Best-in-Class Technologies for Simplified Management, High-Performance and Low Energy Consumption for New Data Center Site

SUNNYVALE, CA and YOKNEAM, ISRAEL - February 16, 2016 - Mellanox(r) Technologies, Ltd. (NASDAQ: MLNX), a leading supplier of high-performance, end-to-end interconnect solutions for data center servers and storage systems, today announced that Zycko, an international specialist IT distributor of innovative IT solutions, has deployed a software-defined storage solution consisting of Mellanox 56Gb Ethernet networking and hybrid Flash VM-Aware Storage from Tintri. This pairing of optimized technologies provides Zycko with simplified deployment and data center management while simultaneously lowering energy consumption and capital expenditures.

"As a distributor, Zycko has access to a wide range of innovative solutions and we have a culture of deploying the products we sell, within our own business infrastructure. This project required cutting-edge technologies that were fully integrated and offered us the best balance of performance and value," said David Galton-Fenzi, CEO, Zycko. "Tintri and Mellanox stood out from the rest because both companies are guided by similar principles - providing solutions with optimal performance, manageability and scalability, all while decreasing the size of your data center footprint and lowering costs. This multi-vendor solution has helped us improve our overall business functionality and has been such a success that we realized we could offer this solution and deliver this same commercial value to our customers."

Zycko's VM Aware storage solution combines a Tintri T820 and the Mellanox SX1012 40/56 Gb/s Ethernet switch. The Tintri platform is an easy to deploy and manage solution which enabled Zycko to begin migrating virtual machines onto it within 30 minutes of unpacking the unit from the box. The Mellanox switch provides tremendous space and cost savings, combined with unmatched performance. Together this joint solution offers:

• 98 percent decrease in management tasks and troubleshooting

• 50 percent space reduction in data center

• Optimized density with 6x 10GbE ports in 1U of space and the ability to support 11x more virtual machines per 1U rack

• 75 percent less power use per port

• 18x more storage performance

• 80 percent cost compared to equivalent technology

"Tintri is the pioneer of VM-aware storage, so when Zycko approached us about deploying a new solution for their own data center that would offer better performance and visibility, we were certainly up for the task," said Andrew Lee, EVP Strategic Alliances at Tintri. "Even better that we were able to work with Mellanox, since we share a focus on reducing latency and costs. This collaboration has proven to be a success on several levels - satisfied customer, new partnership, and a fully validated solution ready for new customers."

"Mellanox realizes the benefits of providing fully integrated storage solutions and our open networking solutions enable companies to create virtualized private clouds that deliver exactly what they need," said Kevin Deierling, vice president of marketing, Mellanox. "We were excited to partner with Tintri to build a simple yet powerful storage solution for Zycko and we recognized that this development had created a fully integrated, ready-to-use, turn-key VM aware storage platform. Zycko had the vision to offer this same platform to their customers deploying virtualized data centers to deliver the performance, and space cost savings that can propel businesses forward."

Docker as a High-Performance Enabler for Cloud Storage

Docker as a High-Performance Enabler for Cloud Storage

February 9, 2016 http://www.enterprisetech.com/2016/02/09/docker-as-a-high-performance-enabler-for-cloud-storage/ by Oded Kellner, Vice President of Product Management, Zadara Storage http://www.enterprisetech.com/author/doug/

The container-based service Docker is gaining massive momentum in the industry, and for many good reasons. The current appeal of Docker http://searchvirtualstorage.techtarget.com/tip/Docker-storage-and-virtual-storage-requirements-differ stems from issues associated with running VMs, namely that each one has to be provided with virtualized memory and storage resources. Containers make it far easier to run enterprise-grade services and address concerns for data portability, scaling, processing, performance, extensibility and latency.

When it comes to storage, however – there’s a rub. Early implementers of Docker utilizing storage applications say that accessing this storage is the most significant challenge in working with Docker, apart from designing the Docker containers themselves. Typically, containers perform a task on the data stored within them, and then disappear, which can be problematic if the data in a container has to be permanent.

Storage options for Docker implementation are nascent, yet emerging modalities appear to follow two distinct approaches. The usual approach is to place storage in compute. Flip this concept around and place the compute into the storage, and we are getting into a very interesting area of exciting new options for high performance enterprise-grade cloud storage.

Docker Storage Options in the Cloud - Storage in Compute

This is currently the most common way of using Docker, mostly because it is a rather simple way of implementation into existing architectures. Docker is pointed at the local storage of the server on which it’s running (this is how one would be using Docker in a public cloud like Amazon Web Services or Microsoft Azure).

Given that server storage is local, as implemented by most cloud providers, this approach offers neither high availability (HA) nor sharing. Another downside is that this approach creates isolated islands of storage within the physical servers. When one application runs out of space, it cannot access excess capacity allocated to another application.

An additional concern is that in widely distributed systems, even with Docker containers, there can be a lack of privacy and isolation, which are important for applications hosting sensitive information or requiring high Quality of Service (QoS) (due to noisy neighbors).

Compute inside the Storage

When it comes to cloud storage, perceptions exist that performance and QoS will be less than on-premise, traditional arrays. While this perception is not necessarily always accurate, improving overall performance is generally a priority, regardless of the architecture. There are multiple ways to achieve this and enabling Docker right inside the storage is one such unique approach. By placing the compute right inside the storage, users can bypassing networking, and achieve practically zero latency between the processor and the storage in the cloud.

There are several important advantages to this approach, especially for high availability and high performance needs.

1. *Reduced Network Latency *

The data doesn’t have to travel over a network that connects servers and storage if the application is running inside the storage and outputs right into the storage.

1. Sharing

One of the main advantages of centralized storage is that it’s shared. That means that the same data set can be accessed by multiple containers and/or virtual machines. For data sets like map data, this is a requirement. Without it, each container would need its own copy of the map data.

1. Persistence

Despite many Docker use cases being ephemeral and local, certain common applications – such as media transcoding – require persistence. In those instances, the data needs to be shared by, and to, multiple VMs and containers and the same data needs to be persistent (the resulting transcoded videos need to be available for streaming after the container has finished transcoding). Docker is an elegant solution for this, because it can be programmed to be launched when needed (e.g., when a new media file is added) and then terminated upon completion (e.g., when the transcoding is done).

1. Extensibility

Since the containers run inside the storage, they give users the ability to write code that adds to the storage functionality. By using containers within the storage, customers can quickly modify, expand and customize the storage behavior and properties, by introducing code for new functionality.

1. Data-Aware Storage

Traditional storage solutions keep and protect the data, but are not aware of the data content. With Docker, it’s relatively easy to write code that runs within the storage and looks into the data, for number of useful purposes like:

· Indexing of Big Data for quick future search

· Search for illegal content

· Security related scans

· Data format change – for instance converting multimedia file formats (different video/images standards and resolutions)

Containerization is allowing savvy IT teams to extend a storage service in such fundamental ways – without forcing users to take a step backward in enterprise-grade features that are critical to performance. We’ve only just begun to see its utility and benefits for high-performance applications, as enterprises find new Docker-based solutions to their business challenges every day.

*Oded Kellner is Vice President of Product Management at Zadara Storage http://www.zadarastorage.com/, an enterprise Storage as a Service (STaaS) player and early adopter of containers for high performance cloud storage*

http://www.enterprisetech.com/2016/02/09/docker-as-a-high-performance-enabler-for-cloud-storage/