MARNETICS LTD. ANNOUNCE THE APPROVING OF A GRANT IN THE SUM OF $230,000

The grant will finance a part out of a $500,000 R&D budget of Marnetics for the development of the ProsperaTM product line.

NEWS

Raanana, Israel, December 30, 2002 – Marnetics Ltd, a subsidiary of Marnetics Broadband Technologies (AMEX: MXB) (the Company") announced the approving of a grant in the sum of $230,000 from the Office of the Chief Scientist in the Ministry of Industry and Trade of the state of Israel.

The grant will finance a part out of a $500,000 R&D budget of Marnetics for the development of the ProsperaTM product line.

The approval of the grant, after in-depth research by the Research committee together with the first installations, such as in Barak Communication - one of the largest services provider in Israel, serves as another testimony for the technology of the Company. The grant will assist Marnetics to improve its products, that will be vital solutions for managing wide area networks." Said Menachem Reinschmidt, Chairman of the Board.

ABOUT MARNETICS
The Company, through its subsidiary, Marnetics Ltd., specializes in the development of Network Capacity Enhancement solutions and Network Information Systems. Prospera, the Marnetics product line, which includes the MegaLink and Expert, is a platform for IP networks, that features capabilities such as enhancing number of sessions, performing QoS, panoramic view of network information and capacity planning and protection of mission-critical applications. Marnetics products are intended to better manage over-subscription situations in IP networks, as well as optimize corporate network infrastructure utilization resulting rapid improvement in the enterprise productivity. For more information: www.marnetics.com.
    

SAFE HARBOR
Certain statements contained in this press release are forward-looking statements and information. The forward-looking information is based upon current information and expectations regarding the Company and its subsidiaries. These information and statements speak only as of the date on which they are made, Forward-looking statements are not guarantees since there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied in the forward-looking statements. The Company assumes no obligation to update the information contained in this press release. The Company's future results may be impacted by risks associated with its business. For a list of major factors that could cause actual results to differ materially from those projected, refer to the filings of the Company (AMEX:MXB) with the SEC.

This press release and prior releases are available at www.marnetics.com

Marnetics Contact
Ilan Hadar, CFO
Tel: +972 9 761 68683
Email: ilan@marnetics.com