Voltaire Achieves Profitability

BILLERICA, Mass. and HERZELIYA, Israel -- Voltaire Ltd. (NASDAQ: VOLT), a leading provider of grid backbone solutions, today announced financial results for the three-month period ended September 30, 2007.

Third Quarter Highlights (compared to third quarter 2006):

• Revenues grew by 88% to $15.5 million
• Gross margin increased to 43.6%, up from 34.4%
• Achieved non-GAAP net income of $0.8 million
• GAAP net income of $0.1 million, before non-cash accretion of redeemable preferred shares
• Generated $0.2 million cash flow from operations
• Strong ramp up in revenues for recently released Grid Director 20 Gigabits per second switch

Revenue for the third quarter of 2007 totaled $15.5 million, an increase of 88% compared to $8.3 million in the third quarter 2006.

GAAP gross profit for the third quarter of 2007 totaled $6.8 million, or 43.6% of revenues, a 138% increase compared to $2.8 million gross profit in the third quarter 2006, or 34.4% of revenues. GAAP operating profit for the third quarter of 2007 totaled $0.2 million, compared to an operating loss of $2.1 million loss in the third quarter of 2006. Net income, before non-cash accretion of redeemable preferred shares, for the third quarter of 2007 was $0.1 million, or $0.01 per diluted share, compared to a net loss of $2.3 million, or $0.18 per diluted share, in the third quarter of 2006.