Metalink Draws Down $2.25 Million Under Short Term Secured Loan

Metalink Draws Down $2.25 Million Under Short Term Secured Loan

YAKUM, Isael, January 5/PRNewswire-FirstCall/ -- Metalink Ltd. (NASDAQ: MTLK), a global provider and developer of high-performance wireless and wireline broadband communication silicon solutions, today announced that it has drawn down $2.25 million under its previously announced short term secured loan agreement with an institutional investor.

Concurrently with the draw down of the $2.25 million, Metalink and the lender entered into an amendment to the loan agreement, whereby Metalink shall receive the loan of $4.5 million contemplated in the original loan agreement to be provided in one tranche, in two tranches of $2.25 million each - the first partial tranche which was provided immediately, and a second tranche which shall be provided at the request of Metalink, within 60 days following the completion of certain terms and conditions which must occur on or before June 30, 2009.

Additional details regarding the amendment to the loan agreement, including a copy of the amendment, are included in the Company's Report on Form 6-K that is being filed today with the Securities and Exchange Commission (SEC).

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM) acted as the exclusive placement agent for the loan.

About Metalink

Metalink Ltd. (NASDAQ: MTLK) is a provider of high performance broadband communication silicon solutions. Metalink's WLAN and DSL technologies are designed to enable true broadband connectivity in every home, and its products revolutionize the broadband experience by facilitating the convergence of telecommunication, networking and entertainment.

Metalink's WLANPlus(TM) is a high-throughput, 802.11n-draft-compliant wireless LAN technology optimized for the networked home entertainment environment. Featuring advanced MIMO technology and full support of QoS, and operating in both 2.4GHz and 5GHz bands, WLANPlus enables multi-room networking of multiple high-definition video streams. In addition, Metalink offers a broad range of symmetric DSL and VDSL products used by operators as a cost-effective network upgrade to support triple-play services.

Safe Harbor Statement

This press release contains "forward looking statements" within the meaning of the United States securities laws. Words such as "aim," "expect," "estimate," "project," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believe," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Because such statements deal with future events, they are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our need to raise additional funds in order for us to implement our current business plan, including our liquidity requirements, which funds may not be available to us; our inability to regain compliance with Nasdaq's listing requirements; any unforeseen developmental or technological difficulties with regard to our products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; and the impact on revenues of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism. 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. Except as required by applicable law, 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.

Further information is available at http://www.MTLK.com

Source: Metalink Ltd

Yuval Ruhama, CFO, Metalink Ltd., Tel: +972-9-9605395, Fax: +972-9-9605544, yuvalr@MTLK.com

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