PowerDsine Launches Public Sector Grant Program in United States and Canada; Will Award $100,000 in PoE Equipment to Public Sector Institutions Deploying WLAN, VoIP or IP Surveillance Systems

Business Wire, May 10, 2005

FARMINGDALE, N.Y. & HOD HASHARON, Israel -- PowerDsine Ltd. (Nasdaq:PDSN), a pioneer in Power over Ethernet (PoE) solutions, today announced that it has launched a Public Sector Grant program that will offer a total of $100,000 worth of PoE Midspan products to qualifying healthcare, government and education institutions operating in the United States and Canadian provinces.

All grants under the PowerDsine Public Sector Grant Program award PoE Midspan solutions to eligible institutions operating in the public sector, specifically healthcare, government and education. Furthermore, eligible institutions based in the United States and Canada must possess an immediate need to implement PoE products supplied through this grant for the purpose of supporting Wireless LAN, Voice over IP (VoIP) or IP surveillance systems.

PowerDsine Midspans, which are fully compliant with the IEEE 802.3af PoE standard, allow IT managers to inject PoE into existing Ethernet networks without replacing legacy Ethernet switches. Keeping legacy equipment may result in cost-savings to many organizations in the public sector. By utilizing a PoE Midspan in the communications closet, IT managers can deliver data, voice and power via existing Ethernet switches and cabling to end devices, such as Wireless LAN access points, VoIP phones and IP surveillance cameras.

As plug-and-play devices, the addition of PowerDsine PoE Midspans to existing network infrastructure is simple and quick. A PoE Midspan that is also connected to an Uninterruptible Power Supply (UPS), increases the reliability of the network application in the event of a power outage. Combined with any Ethernet switch, the PoE Midspan serves as a standard-compliant power source for PoE enabled end-devices that are connected to the Ethernet Network.

Public Sector Grant Kits

PowerDsine is offering three types of grant kits: the "Wireless PoE Kit," the "Voice over IP PoE Kit" and the "IP Security PoE Kit." All three kits are tailored to provide product support for all IEEE 802.3af-compliant devices as well as legacy devices supplied by all manufacturers, including Cisco. The average total of each of these kits is expected to be approximately $5,000 of PowerDsine equipment, with a maximum set at $8,000.

The PowerDsine Public Sector Grants are administered through PowerDsine. Applications are available at www.powerdsine.com or upon request from PowerDsine at 631-756-4680 x 431. All applications must be submitted via fax or mail to PowerDsine by July 31, 2005. Notification letters will be issued August 1, 2005.

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 Ltd. (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.

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