EZChip, Dune Team for Best in Class Silicon Solution

EZchip Technologies and Dune Networks Offer Best in Class Silicon Solutions to Power Service-aware Switches and Routers

Coupling of NP-2 Processor and SAND Chip-Set Offers Most Feature-Rich, Cost-Effective Chip-Set for Implementing Line Cards and Switch Blades

San Jose, Calif - September 23, 2004 - EZchip Technologies (a subsidiary of LanOptics Ltd., NASDAQ:LNOP), a fabless semiconductor company providing high-speed network processors, and Dune Networks Inc., a leading provider of switching fabric and traffic management solutions, today announced a complementary product offering that provides the silicon core of next generation switches and routers. EZchip's NP-2 network processor coupled with Dune's SAND chip-set for traffic management and switching fabric provide the most feature-rich and cost effective chip-set for implementing line-cards and switch blades. The two companies will be offering silicon that has been tested and proven for seamless interoperability as well as a joint Advanced Telecommunication Compute Architecture (ATCA) reference platform. The joint ATCA solution will be available in Q1, 2005.

EZchip's network processors coupled with Dune's traffic manager and switch fabric provide all the key silicon capabilities required to build switch/router systems with unmatched processing and quality-of-service (QoS). Furthermore, since the respective devices are highly integrated, the resulting system features minimal component count and cost. A typical line card will employ a single NP-2 network processor and SAND-FAP10V traffic manager/fabric interface device. The two devices are interconnected via an industry-standard SPI4.2 interface. Cost sensitive Ethernet applications utilize a lower cost model of NP-2, the NP-2/10L, which excludes NP-2's integrated traffic manager, instead using the FAP10V traffic manager to provide end-to-end rate and QoS guarantees. Multi-port SONET/SDH applications take advantage of the traffic management function integrated in both the FAP10V and NP-2 to provide QoS and system-wide end-to-end QoS for up to 192 ports.

''The combination of the Dune and EZchip offerings provides customers with a winning solution comprised of the best in class networking silicon,'' said Eli Fruchter, President and CEO of EZchip. ''OEM vendors get the flexibility to use the same hardware and software design to target a variety of applications and price points. A line card with a single NP-2 from EZchip and single FAP10V from Dune provides solutions for 5-Gigabit, 10-Gigabit and over-subscribed 10-Gigabit throughputs at varying degrees of service levels through different assembly options of pin and software compatible NP-2 models.''

''Additional scalability is offered by the FAP10/20V via its mesh configurations,'' noted Dune Networks' CEO Eyal Dagan. ''Using the NP-2 and FAP10/20V in such a configuration, thus avoiding the need for fabric devices, provides a highly integrated, fully non-blocking and lowest power solution up to 60Gbps, especially important for transport applications.''

Both companies will provide customers with a seamlessly interconnected reference platform based on the ATCA standard. Leveraging this platform, equipment manufacturers can configure a network switch or router reference platform to conduct thorough development, integration and testing before building their products. An application note detailing the joint solution options and reference platform is available.

About Dune Networks
Dune Networks (http://www.dunenetworks.com/) is a leading provider of intelligent and scalable switching fabrics and traffic management devices for Internet and storage networks. Founded in October 2000 by a team with extensive networking system level experience, as well as in-depth expertise in communication theory and silicon design, Dune Networks is headquartered in Sunnyvale, California, and has an R&D center in Yakum Industrial Park, Israel. The company successfully completed a $24M first round of funding in 2002.

About EZchip Technologies
EZchip Technologies (a subsidiary of LanOptics Ltd., NASDAQ: LNOP) is a fabless semiconductor company providing high-speed network processors. EZchip's breakthrough TOPcore® technology provides both packet processing and classification on a single chip at wire speed. EZchip's single-chip solutions are used for building networking equipment with extensive savings in chip count, power and cost. Highly flexible 7-layer processing enables a wide range of applications to deliver advanced services for the metro, carrier edge and core and enterprise backbone. For more information on EZchip, visit our web site at http://www.ezchip.com/.

''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, customer order cancellations, reliance on key strategic alliances, fluctuations in operating results, delays in development of highly-complex products and other risks detailed from time to time in LNOP filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for 2004 and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of LNOP.

EZchip Contact:
Daureen Green
EZchip Technologies, Israel

Dune Networks Contact:
Michal Kahan / Emilio Dabul
Dune Networks, Israel / Fusion Public Relations
+972-9-961-5222 /1-212-651-4216