Metalink Pleased To Announce That It Is No Longer Characterized As A 'PFIC'

Metalink Pleased To Announce That It Is No Longer Characterized As A 'PFIC'

YAKUM, Israel, Jan. 3 /PRNewswire-FirstCall/ -- Metalink Ltd. (NASDAQ: MTLK), a global provider and developer of high performance wireline and wireless broadband communication silicon solutions, today announced that it will not be characterized under the Internal Revenue Code as a passive foreign investment company ("PFIC") for 2004.

Metalink's non-PFIC status for 2004 does not change the 2001, 2002, or 2003 tax impacts to U.S. persons who held shares during those periods, in which years Metalink was a PFIC. Shareholders who held Metalink shares during 2001 and/or 2002 and/or 2003 should consult their tax advisers concerning the PFIC rules, including the tax consequences applicable to them individually.

About Metalink

Metalink Ltd. (NASDAQ:MTLK) develops high performance silicon solutions revolutionizing the broadband experience by facilitating the convergence of telecommunication, networking and entertainment.

Metalink's DSL and WLAN technologies are designed to enable true broadband connectivity in every home.

Metalink's DSL products offer service providers a cost-effective network upgrade to support triple-play services. Using Metalink's innovative VDSL technologies operators can deliver fiber-like speeds over existing copper infrastructure. Metalink's chipsets are deployed in millions of DSL lines by leading service providers worldwide.

Metalink aims to redefine the home broadband experience by introducing WLANPlus(TM) -- a high-throughput wireless LAN technology, 5-10 times faster than currently available wireless LAN 802.11a/b/g technologies. Featuring MIMO technology adopted by the 802.11n standardization, WLANPlus enables room-to- room networking of multiple high-definition video streams.

Metalink is a fabless semiconductor company headquartered in Yakum, Israel. The company has subsidiaries in California, South Korea, and Japan as well as offices in Beijing, China and Atlanta, Georgia. Further information is available at http://www.metalinkbb.com/

This press release contains "forward looking" information within the meaning of the United States securities laws that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Additional factors that could cause actual results to differ materially from these forward-looking statements are set forth from time to time in Metalink's filings with the Securities and Exchange Commission, including Metalink's Annual Report in Form F-20. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events. The Company cannot guarantee future results, events, and levels of activity, performance, or achievements.

Contact:

Ofer Lavie
Chief Financial Officer
Metalink Ltd. Tel: 972-9-9605302
Fax: 972-9-9605544
ofer@metalinkBB.com

Ranen Cohen-Orgad
Director of Investor Relations
Metalink Ltd.
Tel: 972-9-9605450
Fax: 972-9-9605399
ranenc@metalinkBB.com


Source: Metalink Ltd.

CONTACT: Ofer Lavie, Chief Financial Officer, +972-9-9605302,
Fax: +972-9-9605544, ofer@metalinkBB.com, or Ranen Cohen-Orgad, Director of
Investor Relations, +972-9-9605450, Fax: +972-9-9605399,
ranenc@metalinkBB.com, both of Metalink Ltd.

Web site: http://www.metalinkbb.com/


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