Saifun Semiconductors Ltd. Files Registration Statement for Proposed Initial Public Offering

NETANYA, Israel -- Oct. 21, 2005 -- Saifun Semiconductors Ltd. announced today that it has filed a registration statement with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of 5,000,000 of its ordinary shares.

All shares are to be sold by the Company. In addition, Saifun has granted the underwriters a 30-day option to purchase up to an aggregate of 750,000 ordinary shares which is exercisable if more than 5,000,000 shares are sold in the offering. Lehman Brothers is acting as sole book-running manager, Deutsche Bank Securities is acting as co-lead manager and, CIBC World Markets, William Blair & Company and Raymond James are co-managers.

Saifun provides intellectual property solutions for the non-volatile memory (NVM) market. The company licenses its Saifun NROM® technology to semiconductor manufacturers who use this technology to develop and manufacture a variety of stand-alone and embedded NVM products.

Copies of the preliminary prospectus relating to the offering may be obtained, when available, from Lehman Brothers, c/o ADP Financial Services, Prospectus Fulfillment, 1155 Long Island Avenue, Edgewood, New York 11717, by email: monica_castillo@adp.com, or fax (631) 254-7268, or Deutsche Bank Securities at 1251 Avenue of the Americas, 25th Floor, New York, New York 10005, by email: prospectusrequest@list.db.com, or fax (212) 468-5333.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy ordinary shares of Saifun, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.