Alvarion Closes Acquisition of InnoWave, ECI's Fixed Wireless Subsidiary.Business Editors TEL-AVIV, Israel--(BUSINESS WIRE)--April 2, 2003 Alvarion Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALVR), the world leader of Wireless Broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 solutions for Carriers, ISP's and network operators, today announced that it has completed the acquisition of most of the assets and liabilities of InnoWave ECI ECI Employment Cost Index ECI Election Commission(er) of India ECI Enterprise Content Integration ECI Early Childhood Intervention ECI Environmental Change Institute Wireless Systems Ltd., a market leader provider of fixed wireless wideband voice and data point to multi point solutions, wholly owned by ECI Telecom ECI Telecom Ltd NASDAQ: ECIL, is a telecommunication equipment manufacturer based in Petah Tikva, Israel. Ltd. (NASDAQ: ECIL ECIL Electronics Corporation of India Limited ). As disclosed on February 19, 2003, Alvarion is paying $9.7 million in cash, and granting a warrant to purchase 200,000 of Alvarion's ordinary shares over a period of 5 years at an exercise price of $3 per share. The transaction will be accounted for as an assets transaction. During the next several quarters, Alvarion expects to record charges of approximately $3 million related to acquisition and integration costs The acquisition is an important step forward in implementing Alvarion's strategy to strengthen its leading position of the Fixed Wireless industry. The integration of InnoWave into Alvarion is expected to: -- Expand Alvarion's product portfolio with a range of established, high-quality, and excellent cost-performance Wideband Voice and Data solutions; -- Significantly increase Alvarion's ILEC (Incumbent Local Exchange Carrier) A traditional local telephone company such as one of the Regional Bell companies (RBOCs). Contrast with CLEC. See ELEC and TELRIC. customer base and experience in large scale deployment projects. -- Double Alvarion's wireless subscribers installed base to nearly 1.5 million. -- Position Alvarion as the new leader in the growing Wideband Voice and Data market within the Broadband Wireless industry. About Alvarion Alvarion is a premier provider of solutions based on Point-to-Multipoint (PMP See point-to-multipoint and portable media player. PMP - Portable Media Player ) Broadband Wireless Access (BWA (Broadband Wireless Access) High-speed wireless access. Typically refers to wireless last mile access to the Internet. See WiMAX and broadband. ) 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 (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. ) 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, please visit Alvarion's web site at http://www.alvarion.com. About ECI Telecom ECI is a provider of advanced, telecommunications solutions. With its leading-edge access, transport and bandwidth management platforms, ECI enables major service providers and carriers worldwide to maximize their capital investment and reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. while providing voice, data, video and multimedia services to their customers. ECI maintains a global sales and customers support network. Its solutions are an integral part of more than 700 telecommunications networks in over 145 countries. For more information, please visit ECI's web site at http://www.ecitele.com. About InnoWave InnoWave ECI Wireless Systems Ltd., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of ECI Telecom Ltd., is a global leader in the design and deployment of innovative and cost effective fixed wireless access solutions. Over 60 telecom operators worldwide have successfully deployed InnoWave's systems to deliver high quality and reliable voice and data services to more than 700,000 subscribers. For more information, please visit Alvarion's web site at http://www.innowave-ws.com. This press release may contain forward-looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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. You may register to receive Alvarion's future press releases or to download a complete Digital Investor Kit(TM) including press releases, regulatory filings and corporate materials by clicking on the "Digital Investor Kit(TM)" icon at www.kcsa.com. |
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