Progress first half 2006–Letter from CEO

After finishing our first half of 2006, we believe it is appropriate to communicate our remarkable progress to our customers. Sale has nearly doubled and we can contentedly look back on financially very robust first six months. Our goal this year to be a plus $ 10 million company looks without doubt feasible. We trust this gives our customers the assurance that we continue to have the resources to invest in improvement and expanded capacity, giving the strength to be their long-term strategic MEMS development and manufacturing partner.

One of the key factors of our growth is that we believe to have crossed the famous high-tech chasm and is rapidly moving from early development markets into more mainstream MEMS markets. The past period has meant significant increase in manufacturing revenue, and while our manufacturing orders are growing appreciably, we continue to win development projects and new customers.

On the development side, we maintain the focus on short lead times and time to market. We also carry on hiring creative and talented engineers to develop and fabricate innovative solutions for our customers.

Recently we have strengthened our North American Sales Office by added new recourses. We are happy to announce that Mr. Brian O’Loughlin has been employed as Account Sales Manager for the North American Market. Mr. O’Loughlin joins us from Texas Instruments where he held the position as Product Development Manager for Sensor Products.

I like to take this opportunity to thank our customers and wish you all a gorgeous summer.

Jan Nerdal, CEO, Silex Microsystems