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EZchip Semiconductor, Ltd. (EZCH)
Business Summary excerpt from SEC filing dated: March 30, 2007

We were incorporated as a limited liability company under the laws of the State of Israel in 1989. Until 1999, our principal business was the development, manufacturing and marketing of solutions and Internet applications that improve connectivity and performance of corporate Local Area Networks, or LANs, and Wide Area Networks, or WANs. Our business now consists of the development and marketing of high performance network processors through our independent business unit, EZchip Technologies Ltd., or EZchip, in which we currently have a 77.8% ownership interest. Our principal executive offices are located at 1 Hatamar Street, P.O. Box 527, Yokneam 20692 Israel, and our telephone number is +972-4-959-6666. Puglisi & Associates, located at 859 Library Avenue, Suite 204, P.O. Box 885, Newark, Delaware 19715, serves as our agent for service of process.

Our business initially consisted of developing, marketing and producing LAN equipment, such as hubs and switches, based on the Token Ring protocol. Beginning in 1995, the Ethernet protocol became increasingly dominant in the LAN market. Products based on the Token Ring protocol, which formed the core of our business, suffered from declining market share. In response to the changing market environment, we started to develop Ethernet protocol-based LAN products.

In addition, we started new business initiatives in areas different from our core business. One of these businesses, which we incorporated as NetXchange in 1996, operated in the fax over Internet Protocol market. We decided to cease the operations of NetXchange in 1998, after sustaining significant losses. In 1997, we incorporated NetGuard Ltd., which provided Internet security solutions and closed its operations during the first quarter of 2001.

In mid-1999, we decided to cease the research and development of new switching products for LANs and instead, to focus on our internal application-specific integrated circuit, or ASIC, design team. This team, that had previously developed ASICs for our products, began work on the development of network processors. This new business initiative was incorporated as our EZchip subsidiary in December 1999.

Through EZchip we develop high-performance network processors for high speed networking equipment. EZchip's technology enables complex packet processing without any noticeable degradation in speed. EZchip's solutions enable networking vendors to build powerful products quickly and cost effectively.

EZchip's initial product, the NP-1, a 10-Gigabit, seven-layer network processor, began shipping to customers in April 2002. EZchip's second generation network processor, the NP-1c, an enhancement to our NP-1 product, has been commercially available since December 2003. In July 2006, EZchip started shipping to customers its third generation network processor, the NP-2, which is an enhanced 10-Gigabit network processor offering integrated traffic management. We are continuing to develop high-speed network processors with exceptionally high levels of integration.


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