PowerDsine Settles Patent Infringement Litigation with System Engineer

    Business Editors/High-Tech Writers

    FARMINGDALE, N.Y. & HOD HASHARON, Israel--(BUSINESS WIRE)--Jan. 26, 2005--PowerDsine(TM) Ltd. (Nasdaq:PDSN), a pioneer in Power over Ethernet (PoE) solutions, announced today that it has settled its litigation with System Engineering International, Inc. (SEI) and, as part of the settlement, PowerDsine granted SEI a license to use its U.S. patent number 6,476,608 in connection with the manufacture and sale of Midspan PoE products.
    PowerDsine had commenced an action before the Federal District Court for the Southern District of New York alleging that certain products produced and/or sold by SEI infringe PowerDsine's Midspan technology patent. Following settlement discussions, the two companies reached an amicable settlement.
    "We are very pleased to reach an amicable settlement with SEI," said Mr. Simon Kahn, PowerDsine's Director of Intellectual Property. "This settlement is part of PowerDsine's intellectual property strategy of providing licenses to companies that want to take an active role in the Power over Ethernet market."
    PowerDsine's U.S. patent 6,476,608 addresses an Ethernet LAN, in which "power enabled" elements are detected so that current limited power can be distributed safely via spare pairs of the data Ethernet cabling infrastructure to those elements without affecting legacy devices. The patent covers PoE Midspan products that connect to an Ethernet switch in order to PoE-enable an enterprise network.
    PowerDsine has been granted similar patents in China, Taiwan, Singapore, Australia, New Zealand and South Africa. These patents protect the same claims covered by the foregoing United States patent. In addition, PowerDsine has patent applications covering this technology pending in five countries and Europe.

    About Power over Ethernet Technology

    PoE is a technology for wired Ethernet, the most widely installed local area network technology in use today. PoE allows the electrical power necessary for the operation of each end-device to be carried by data cables rather than by separate power cords. It minimizes the number of wires that must be used in order to install the network, resulting in lower cost, less downtime, easier maintenance and greater installation flexibility.

    About PowerDsine

    PowerDsine(TM) (NASDAQ:PDSN) designs, develops and supplies integrated circuits, modules and systems that enable the implementation of Power over Ethernet in local area networks, providing the capability to deliver and manage electrical power over data network cables. PowerDsine offers integrated products and system solutions to communications equipment manufacturers in the telecom and datacom industries who incorporate them into, or bundle them with, their products. PowerDsine is a founding member of the IEEE 802.3af Task Force. For more information, please visit http://www.powerdsine.com

    Forward Looking Statements

    Statements made in this press release that are not historical facts, including statements regarding our expectations of future events or our future financial performance, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions about PowerDsine and the matters covered in this release. You should not place undue reliance on these statements. Actual events or results may differ materially. Many factors may cause our actual results to differ materially from any forward looking statement, including acceptance of new products, costs relating to such products and other factors detailed in PowerDsine's filings with the Securities and Exchange Commission, including its Registration Statement on Form F-1. The forward-looking statements are made as of this date and PowerDsine does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    PowerDsine is a registered trademark of PowerDsine Ltd. All other trade names are the property of their respective owners.

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CONTACT: PowerDsine North America Merritt Group Public Relations John Conrad, 703-556-6824 Email: conrad@merrittgrp.com or PowerDsine Simon Kahn, Director of Intellectual Property simonk@powerdsine.com

KEYWORD: NEW YORK ISRAEL INTERNATIONAL AFRICA/MIDDLE EAST INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING INTERNET E-COMMERCE MARKETING AGREEMENTS SOURCE: PowerDsine

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