Metalink Shucks PFIC StatusMetalink Shucks PFIC Status

YAKUM, Israel -- 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.

Metalink Ltd.