YOKNEAM, Israel -- LanOptics Ltd. (NASDAQ: LNOP), a provider of network processors, today announced that it has entered into an agreement with Apax Partners that will allow LanOptics to increase its shareholdings in EZchip Technologies. Pursuant to the agreement, LanOptics will increase its equity interest in EZchip from 57% to approximately 66% of the outstanding share capital of EZchip. The increase will be accomplished by the exchange of Apax Partners' shares in EZchip to LanOptics, in consideration for the issuance of 1,153,508 newly-issued LanOptics shares. LanOptics has granted Apax Partners registration rights, and Apax Partners has agreed to certain restrictions on the sale of LanOptics' shares. Dr. Meir Burstin, Chairman of the Board of Directors of LanOptics, said: "We approached Apax with this transaction to increase our equity interest in EZchip. We are certain that Apax will continue to make a substantial contribution to LanOptics, as it has to EZchip. We believe that with its outstanding technology and market recognition EZchip is poised to become a leader of the network processors market. EZchip's NP-1 processor, now in production and shipping, represents a tremendous cost savings for OEMs. We are confident that EZchip will rapidly establish itself as a leader in this space." Allan Barkat, Managing Director of Apax Partners in Israel, said: "The transaction reflects Apax's confidence in the future of LanOptics and EZchip. We believe that EZchip, with its innovative technology, is poised to become a dominant force in the market for network processors. The exchange will allow us to hold shares in a publicly traded company whose future is directly linked to EZchip." LanOptics Ltd. EZchip Technologies