Mellanox and Verari Systems Demonstrate InfiniBand Converged Wire Benefits in Server Blades With VMware

Mellanox™ Technologies, Ltd. (NASDAQ:MLNX) (TASE:MLNX), a leading supplier of semiconductor-based, server and storage interconnect products, today announced that a joint virtual infrastructure demonstration with Verari Systems® consisting of VMware Infrastructure, Verari Systems’ BladeRack®2 blade server chassis and server blades, and native InfiniBand storage from LSI® using LSI’s 6498 Storage System connected via Mellanox InfiniBand adapters, delivers compelling I/O cost and power benefits by replacing multiple Gigabit Ethernet NICs and Fibre Channel Adapters with a single Mellanox 20Gb/s InfiniBand adapter. This demonstration is a bellwether of the adoption of unified InfiniBand I/O in the rapidly growing virtualized data center market used to solve both cost and power issues in IT infrastructure, especially in blade server deployments. "We expect the install-base of virtualized machines to heavily grow over the next five years, reaching 15 to 20 million by 2012 from the current number of an estimated 3 million(a),” said Jeffrey Hewitt, research vice president at Gartner. "The combination of multi-core CPU and blade server deployments, along with enhancements in virtualization software, will increase the need for higher bandwidth and unified I/O technologies.” InfiniBand-based virtualized blade servers incorporating Mellanox 20Gb/s adapters provide data centers with optimal total cost of ownership and the following features: Reduce I/O cost 40 – 50% Reduce I/O power ~30% Reduce I/O real estate needs in blade servers through I/O consolidation Maintain interoperability with existing LAN and SAN infrastructures Maintain compatibility with virtual machine-based applications and virtual infrastructure management software "Virtualized environments require significant I/O resources per server to support the LAN and SAN connectivity needs of multiple virtual machines that run on each physical server,” said Thad Omura, vice president of product marketing at Mellanox Technologies. "Mellanox solutions deliver true unified I/O using field-proven InfiniBand hardware and industry standard Open Fabrics Enterprise Distribution (OFED) based software, significantly reducing I/O related cost, power and eliminates cabling complexity.” The InfiniBand drivers for virtual infrastructure solutions based on VMware ESX Server are being developed as part of the VMware Community Source program. These OFED-based drivers ensure broad interoperability with the ecosystem of OEM, OSV, ISV suppliers of InfiniBand solutions. Legacy Ethernet NIC and SCSI HBA interfaces are preserved in the virtual machines enabling existing OS and applications qualified for VMs to run seamlessly over InfiniBand. Similarly, SAN and LAN I/O resource provisioning transparency is preserved. "I/O resources in virtualized environments must be scaled with multi-core CPUs and with increasing the number of virtual machines without compromising the cost, power and space saving value propositions of blade servers,” said David Driggers, CTO, Verari Systems. "This demo is a proof-point that IT Managers when deploying Verari’s BladeRack 2 with virtual infrastructure solutions based on VMware Infrastructure and Mellanox’s InfiniBand-based unified I/O solutions can gain new levels of virtualization performance and achieve higher levels of efficiency and utilization.” Visit Mellanox and Verari Systems at VMworld, September 11-13, Moscone Center The virtual infrastructure solution based on VMware Infrastructure over InfiniBand demo can be viewed at the Verari booth (#108) during exhibit hours. Visit the Mellanox booth (#326) for additional information on Mellanox’s full line of leading InfiniBand and Ethernet connectivity products. About Mellanox Mellanox Technologies is a leading supplier of semiconductor-based, high-performance, InfiniBand and Ethernet connectivity products that facilitate data transmission between servers, communications infrastructure equipment and storage systems. The company’s products are an integral part of a total solution focused on computing, storage and communication applications used in enterprise data centers, high-performance computing and embedded systems. Founded in 1999, Mellanox Technologies is headquartered in Santa Clara, California and Yokneam, Israel. For more information, visit Mellanox at www.mellanox.com. (a) Source: Gartner, Inc., Dataquest Insight: Virtualization Impacts x86 Server Shipments, Doc #G00149691, Aug 2007, Jeffrey Hewitt, Jonathon Hardcastle, Adrian O'Connell 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. 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 "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. 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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 growth in the install-base of virtualized machines over the next five years, 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 distributors; our ability to compete in our industry; fluctuations in demand, sales cycles and prices for our products and services; our ability to protect our intellectual property rights; general political, economic and market conditions and 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 are set forth in our Form 10-Q filed with the SEC on August 8, 2007, and our Form 10-K filed with the SEC on March 26, 2007, including "Risk Factors”. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements. Mellanox, ConnectX, InfiniBlast, InfiniBridge, InfiniHost, InfiniRISC, InfiniScale, and InfiniPCI are registered trademarks of Mellanox Technologies. All other trademarks are property of their respective owners.