Alvarion BWA Network Deployed by Moscow Cellular Operator.

Business Editors

TEL-AVIV, Israel--(BUSINESS WIRE)--Oct. 8, 2002

After Quickly Installing the First Stage of the Network, MCC Has Launched Internet Access and VPN Services In Moscow Region

Alvarion Ltd. (NASDAQ: ALVR), a leading provider of Broadband Wireless Access (BWA) solutions, today announced that Moscow Cellular Communications (MCC), a leading Russian cellular operator, has finished installation of the first stage of an extensive BreezeACCESS(TM) XL fixed wireless network on the 3.5GHz frequency band, and has begun rolling out commercial services.

Network deployment began in December 2001 following a successful pilot study that proved BreezeACCESS's ability to provide cost-effective Broadband Internet Access, Virtual Private Networks (VPNs), and other advanced access services. During the first stage, Alvarion equipment worth approximately $500,000 has been installed throughout the greater Moscow region, and services for residences and businesses have been launched under the brand name of Alaris.

MCC is one of Russia's largest and best-capitalized cellular operators, and is currently migrating from an analog network to GSM and 3G digital technologies. In deploying Alvarion's cutting-edge BWA network, MCC recognized the opportunity to leverage its substantial assets, including towers, customer service organization, customer base, and branding, to launch popular revenue-generating data services.

Commenting on the news Bulat I.Timerbulatov, Deputy Managing Director of MCC, said, "Demand for broadband Internet access in Moscow is growing fast, but DSL cannot reach more than 30% of the region due to its poor wireline infrastructure. This is a great opportunity for us. Using Alvarion technology and the assets we have built through our cellular business, it has been quick and relatively inexpensive to set up our new data infrastructure, and to launch the city's most sophisticated telecommunications services. We continue to expand the network as an important way to secure our market share and boost our revenues."

Zvi Slonimsky, CEO of Alvarion, added, "MCC, like so many cellular operators, has discovered that BWA is a great business opportunity. In most developing regions with poor infrastructures, the established cellular providers are ideally positioned to benefit from DSL's shortcomings. Using our BWA networks, they can quickly launch affordable broadband Internet access and advanced data services to increase their revenues and improve their positioning. This is a compelling business proposition, and an important driver of our sales."

About MCC

Moscow Cellular Communications (MCC) was established in 1992 and is one of the leading Russian cellular communication service providers. The founders of the company are MGTS, MMT, RTDK, and others. At present, MCC is developing rapidly, introducing next generation tariff plans for its subscribers, offering Internet access services, and testing state-of-the-art digital cellular communication technologies which may become a future platform for upgrading the existing MCC network.

For more information, please visit its website at http://www.mcc.ru.

About Alvarion

Alvarion is a premier provider of solutions based on Point-to-Multipoint (PMP) Broadband Wireless Access (BWA) used by telecom carriers, service providers, and enterprises worldwide. Alvarion systems provide Internet access and voice and data services in the last mile, cellular network feeding, building-to-building and wireless local area network (LAN) connectivity.

Alvarion offers the broadest range of BWA solutions by market segment and frequency band, designed to address all carriers' and service providers' business models. With its combined market experience, strong customer base, diversified distribution channels and field-proven deployments, Alvarion is a leading BWA pure play provider for every end user profile, from residential subscribers to business customers.

For more information, visit Alvarion's World Wide Web site at http://www.alvarion.com.

This press release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in filings with the Securities and Exchange Commission.

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