Airspan Networks Selected by Siemens to Provide High-Speed Broadband Access in South Africa.

Business Editors

SUNRISE, Fla.--(BUSINESS WIRE)--Dec. 21, 2001

Airspan Networks, Inc. (Nasdaq: AIRN), a leading worldwide equipment provider of wireless DSL networks, has signed an agreement with Siemens to initially provide US$3.3 million of Airspan's AS4000 wireless DSL systems to Eskom Enterprises for a major new network in South Africa.

The Second Network Operators (SNO) will be the first provider in South Africa to be granted a license for a fixed wireless project in South Africa other than incumbent local exchange carrier, South African TelKom. The SNO will be a joint venture between Eskom, South Africa's power utility company, and Transtel, the telecommunications division of the country's railway company.

The deployment, to be rolled-out in three phases, will initially focus on Johannesburg, Durban and Cape Town. Commercial service is expected to commence in May 2002.

"This project emphasizes the sharp demand we are seeing for high-speed Internet services in South Africa," said Pete da Silva, chief operating officer for Siemens Telecommunications Pty Ltd. "A key issue for regional operators is time-to-market. In order to retain customers and be competitive, they must be in a position to provide new services quickly and cost effectively. Airspan has the most compelling value proposition for our customers."

With a population in excess of 40 million, South Africa is a growing market for broadband fixed wireless communications services. It is estimated that there are close to 400,000 potential small and medium enterprise (SME) customers in South Africa that can benefit from high-speed Internet services. Additionally, high-end residential and small office/home office (SOHO) markets are increasingly high-growth areas that can be serviced by Airspan's technology.

Airspan's AS4000 wireless DSL system was selected because it provides the optimum solution for the wideband service segment. When combined with the bundled voice and packet data service, Airspan believes that it is an attractive offering for SNO's target customers in the small to medium size enterprise market.

The Airspan AS4000 wireless DSL system offers point-to-multipoint delivery of a wide range of telecommunication services including premium telephony, high-speed packet and leased-line data. The system has coverage of up to 25km from base with quality of service exceeding traditional copper wire systems. It has frequencies ranging from 900MHz to 4 GHz.

"We are delighted to be working with Siemens to deliver reliable, cost-effective, high-speed access infrastructure that will enable customers in South Africa to quickly get connected to a state of the art network," said Eric Stonestrom, president and CEO of Airspan Networks. "Siemens and Airspan have a number of market opportunities around the world together and we believe that this is an outstanding start to a potential long term relationship. This project represents one of the most exciting new network builds in Africa."

About Siemens

With more than 250 million EWSD-switched lines across the globe, Siemens is the number one supplier worldwide for carriers in this segment. Its customers include 300 fixed-network operators in 109 countries. EWSD is constantly being refined in order to exploit new business opportunities for network operators through new solutions. In connection with the Attane and SURPASS technology and product families, EWSD also supports migration to the Next Generation Network (NGN). For more information on Siemens and its varied list of companies, www.siemens.com

About Airspan Networks

Airspan provides wireless DSL systems and solutions to operators around the world with licenses in frequency bands between 900 MHz to 4 GHz, including both PCS and MMDS. The company has deployments with more than 60 operators in more than 40 countries. Airspan's systems are based on radio technology that delivers wide area coverage, security and resistance to fading. Airspan's systems can be deployed rapidly and cost effectively, providing attractive alternative to traditional wired communications networks. Airspan also offers radio planning, network installation, integration, training and support services to facilitate the deployment and operation of its systems. More information on Airspan can be found at http://www.airspan.com

This press release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. These statements are only predictions and actual results could differ materially from those anticipated in these statements based on those factors identified in the company's filings with the SEC. The words "believe", "expect", "intend", "anticipate", variations of such words and similar expressions identify forward-looking statements but their absence does not mean that the statement is not forward looking. Forward looking statements in this press release include statements that the South African market is a high growth market for the company's products, that the AS4000 wireless DSL system provides the optimum solution for the wideband service segment, that there are a number of market opportunities for Airspan and Siemens in South Africa and elsewhere in the world and the potential that Airspan will be involved in a number of transactions with Siemens in the future. These statements are not guaranties of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement.