Galileo Technology Ltd.
Ticker:GALTF Hacharoshet St. 36
Exchange:NASDAQ-National Market Karmiel, ISRAL 20100
Industry:High-Tech (SIC Code 3571)
# of Employees:80

Offering Information
Type of Shares:Ordinary Shares Filing Date:7/1/97
U.S. Shares:3,000,000 Offer Date:7/28/97
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:3,000,000 Offer Price:$17.00
Secondary Shares:0 Gross Spread:$1.19
Offering Amount: $33,000,000 Selling:$0.70
Expenses:$1,300,000 Reallowance:$0.10
Shares Out After:19,390,967

Primary Underwriting Group
ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 895-2700
Montgomery SecuritiesCo-manager (415) 627-2100
Robertson, Stephens & CompanyCo-manager (415) 989-8500

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: McCutchen, Doyle, Brown & Enersen
Bank's Law Firm: Fenwick & West
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 3/31/97 3/31/96 3/31/97
Revenue:$6.46$4.40$0.54Assets:$15.56
Net Income:-$0.95$0.48-$0.41Curr Assets:$13.92
EPS:-$0.05$0.03Liabilities:$7.18
Prior EPS:$0.44-$0.25Curr Liabilities:$6.76
Cash Flow/Oper:-$1.20$1.98$0.18Equity:$8.38
Cash Flow/Fin:$7.00$0.08-$0.15Cash:$9.84
Cash Flow/Inv:-$2.62$0.08Working Cap:$7.15

Business Description
The company defines, develops and markets digital semiconductor devices that perform critical functions for network systems. The company's products are designed to simplify design efforts, reduce development risk and costs and improve time to market. The company's "datacom systems on silicon" are designed to simplify design efforts, reduce development risk and costs, and substantially improve time-to-market for OEMs in the data communications equipment market. The company's existing products - system controllers, switched Ethernet LAN controller and remote access WAN controllers - provide three of the key functionalities of data communications systems. The company's products are sold to network system vendors such as Bay Networks, Inc., Cisco Systems Inc., Hewlett-Packard Company and Madge Networks N.V. The company has developed three product families that address network system vendors' needs. The company's system controllers interface with RISC microprocessors to manage a network system. The company also developed the first merchant single chip Ethernet switch.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes including working capital needs and possible acquisitions.

Principal and Selling Shareholders
Name of Shareholder% Owned
Before
% Owned
After
Avigdor Willenz40.10%34.40%
Matty Karp16.20%13.90%
Christopher J. Schaepe12.90%11.10%
Galileo Technology Ltd. Stock Option Trust10.60%9.10%
Note: Represents ownership of 5% or more prior to the offering.
Executive Officers and Directors
Officer NameTitleAge
Avigdor WillenzChief Executive Officer and Chairman of the Board of Directors40
Manuel AlbaPresident of GTI and Director41
George A. HerveySenior Vice President and Chief Financial Officer50
David ShemlaVice President of Communications37
Menachem SchwartzVice President of Computer Aided Design40
Eyal WaldmanVice President of Engineering36
Mitchell KahnVice President of Marketing of GTI33
Eliaz LaviVice President of Operations, Quality & Reliability40
John C. MeinVice President of Technical Sales of GTI44

©1997 IPO Data Systems, Inc. - All rights reserved.