EZchip Semiconductor Ltd.
                       Condensed Consolidated Balance Sheet
 
                           (U.S. Dollars in thousands)
 
                                                     June 30,       December 31,
                                                       2012             2011
                                                   ------------     ------------
                                                   (Unaudited)       (Audited)
    ASSETS
    CURRENT ASSETS:
    Cash, cash equivalents, marketable
    securities and deposits                         $ 153,764        $ 126,770
    Trade receivables, net                              5,215            8,655
    Other receivables                                   4,524            1,837
    Inventories                                         5,992            5,788
                                                   ------------     ------------
    Total current assets                              169,495          143,050
 
    NON CURRENT ASSETS:
    Severance pay fund                                  5,472            5,215
    Long term investment and others                       333              337
                                                   ------------     ------------
    Total non current assets                            5,805            5,552
 
    PROPERTY AND EQUIPMENT, NET                         1,090              828
 
    INTANGIBLE ASSETS, NET                              1,103            1,205
 
    GOODWILL                                           96,276           96,276
 
                                                   ------------     ------------
    TOTAL ASSETS                                    $ 273,769        $ 246,911
                                                   ============     ============
 
    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
    Trade payables                                      $ 746          $ 2,319
    Other payables and accrued expenses                 6,028            6,352
                                                   ------------     ------------
    Total current liabilities                           6,774            8,671
 
    ACCRUED SEVERANCE PAY                               6,443            6,081
 
    SHAREHOLDERS' EQUITY:
    Share capital                                         160                155
        Additional  paid-in  capital                                                305,820                    288,641
        Accumulated  other  comprehensive  loss                                  (436)                        (960)
        Accumulated  deficit                                                              (44,992)                  (55,677)
                                                                                                      ------------          ------------
        Total  shareholders'  equity                                                260,552                    232,159
  
                                                                                                      ------------          ------------
        TOTAL  LIABILITIES  AND  SHAREHOLDERS'
        EQUITY                                                                                    $  273,769                $  246,911
                                                                                                      ============          ============