Airspan Signs Distribution and Manufacturing Agreement in China With Jinpeng; Guangzhou Jinpeng Supplies All Nine Recent Chinese Auction Winners.

Business Editors/High-Tech Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--March 24, 2003

Airspan Networks, Inc. (Nasdaq:AIRN), a leading global provider of fixed broadband wireless DSL networks, announced today it has signed a distribution and manufacturing agreement with partner Guangzhou Jinpeng Group Co., Ltd. (JPG) to better enable it to support the nine operators that were recently awarded licenses by the Chinese government to provide fixed wireless services in 32 cities.

Jinpeng currently supplies telecommunications equipment to all of the new auction winners, including China Unicom, China Communication Systems, China Telecom, China Netcom, China Mobile, China Satcom and China Railcom.

The agreement with JPG will enable Airspan's Chinese partner to supply the AS40x0 series of products to the various operators in a cost effective and timely manner. Phase One of the agreement calls for assembly and test of key Airspan infrastructure components, as well as the establishment of local repair and return facilities.

"We've been highly pleased with Airspan's technology," said Jinpeng President Chen Zuxing. "In repeated testing, the Airspan wireless DSL solution has proven to be a perfect fit for the "last mile" access needs throughout all of China. Jinpeng will be working diligently with all license holders to demonstrate Airspan's product superiority."

Jinpeng's enthusiasm was echoed by Airspan executives. "Since establishing our offices here in China, we've put into place all of the key components to prepare us to seize China's huge business potential," said Henrik Smith-Petersen, Airspan's president of Asia Pacific. "This step by the government to open up 32 more cities represents an immediate opportunity to garner more than $100 million of business in the frequency range which our product platforms dominate worldwide. This is a very exciting development for Airspan's continued growth and an opportunity for the Asia Pac region to be one of its largest contributors."

In its most recent round of auction awards, the Chinese Ministry of Information (MII) expanded the list of cities offering 3.4GHz fixed wireless services to 37, including major cities such as Beijing, Shanghai and Guangzhou. In Guangzhou, its Mayor, Zhang Guangnin, recently joined Airspan executives at a ceremony marking the signing of the agreement with locally-based, Jinpeng.

"We're pleased with Airspan's decision to manufacture here in China," said Guangzhuo Mayor Zhang Guangnin. "This truly demonstrates a commitment to work hand in hand with Chinese firms, sharing in the lucrative nature of our telecommunications market."

It is expected that the top five license winners, Unicom, China Communications Systems (CCS), China Netcom, China Mobile and China Telecom will purchase the largest volume of fixed wireless equipment in this second round of the country's 3.4GHz service rollout.

Most of these operators are expected to continue bidding for the more than 325 additional 3.4GHz licenses to be awarded by the MII during the next 12 months. As the MII adds to its growing list of cities where operators can offer high-speed, fixed broadband wireless services, more Chinese communities can access the Internet effectively.

Today, less than one percent of the 20 million Internet users in China access the Internet via a broadband connection. According to Pyramid Research, those figures will change dramatically in the next three years with more than 20 percent of almost 107 million Internet users expected to sign onto the worldwide web using a high-speed broadband connection. China is already by far the world's largest purchaser of telecommunications equipment, accounting for 20 percent of global spending.

About Airspan Networks

Airspan Networks provides wireless DSL systems and solutions to both licensed and unlicensed operators around the world in frequency bands between 900 MHz to 4 GHz, including both PCS and 3.5GHz. Additionally, Airspan has developed an enhanced version of its WipLL product, which in addition to the 2.4GHz range, serves unlicensed operators in the 5.7-5.8GHz range. Airspan continues to evolve its products in order to meet new 802.11b and 802.16a IEEE standards. The company has deployments with more than 100 operators in more than 50 countries. Airspan's systems are based on radio technology that delivers excellent area coverage, high security and resistance to fading. Airspan's systems can be deployed rapidly and cost effectively, providing an 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. Airspan is headquartered in Boca Raton, Florida with its main operations center in Uxbridge, United Kingdom. More information on Airspan can be found at http://www.airspan.com

About Guangzhuo Jinpeng

Guangzhou Jinpeng Co., Ltd., deploying the research and development of GSM and CDMA, project design, manufacturing and installation, is one of the largest manufacturers of mobile communications systems in China. The company is composed of eight shareholders, including Guangzhou Yuexiu Information Science & Technology Co., Ltd., No.54 Institute of the Ministry of Information Industry, Kaide Holdings Company in Guangzhou Economic and Technological Development Zone, China Electronic Information Industry Group Company, China Electronics Import & Export Corporation, Zhongshan Group, Central China University of Science and Engineering and Guangzhou Electronic Science and Technology Park Development General Company. It engages mainly in the manufacture of communication equipment and the design and construction of telecommunication network projects. Under the care of the Ministry of Information Industry and the support of the governments of Guangdong Province and Guangzhou Municipality, Jinpeng has become a domestically well-known telecommunications manufacturer. As a full-scale provider of telecommunication network equipment, Jinpeng Group offers more than 30 varieties of products in the 9 categories of mobile communication systems. More information on Jinpeng can be found at http://www.gzjpg.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. 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.