Alvarion Extends Leadership in Compact GSM Solutions with New Smaller UltraWAVE Products; Micro BTS/BS Plus and X40 Switch Offer Low Entry Points While Supporting Full Functionality Including Value-Added Services.

BARCELONA, Spain -- Alvarion Ltd., (NASDAQ: ALVR), the world's leading provider of wireless broadband solutions and specialized mobile networks, today extended its leadership in compact GSM solutions by introducing two new network products, the UltraWAVE Micro BTS/BS Plus and the UltraWAVE X40 MSC. Offering service providers lower entry points when building and augmenting GSM networks, both products support full GSM features, including value-added services, and are the newest additions to Alvarion's popular UltraWAVE product line--an ideal solution for small to medium networks and specialized applications with quick deployment and seamless integration into existing wireless and wireline network infrastructures.

The Micro BTS/BS Plus, at about one half the size of Alvarion's current BTS/BS Plus, and the X40 MSC, at about one-fourth the size of the current X100 MSC, represent significant breakthroughs in reduced size delivering unparalleled value and an accelerated return on investment. Also sufficiently scalable and flexible to adapt to changing carrier needs, both products will be commercially available by the end of the first quarter of this year.

"These products are exciting additions to our widely-deployed UltraWAVE product line as the first full featured GSM systems of their size," said Amir Rosenzweig, President of Alvarion, Inc. "Operators deploying either product will receive the same features as our larger systems without sacrificing the ability to scale their networks. Alvarion customers have come to expect cost-effective, easy-to-deploy GSM systems for remote and specialized applications from us, and the Micro BTS/BS Plus and X40 MSC expand our leadership in this area."

Operating in the GSM frequencies of 850, 900, 1800, and 1900 MHz, the UltraWAVE BTS/BS Plus is housed in a single 19 inch rack-mounted chassis and uses the same internal modules and software as our full-sized UltraWAVE BTS/BS Plus. Omni and sectorized configurations up to S444 are also supported. Alvarion's UltraWAVE X40 MSC is a full featured, digital switch for GSM networks, supporting all telephony services including integrated value-added services such as prepaid, voice mail and SMS. It can support up to 40,000 subscribers and 64 E1 ports for backhaul. The X40 is designed around a dual-platform load sharing redundant architecture with built-in HLR/VLR and full subscriber management features.

About Alvarion

Alvarion is the worldwide leader in wireless broadband and compact cellular solutions providing systems to carriers, ISPs and private network operators, with more than 2 million units deployed in 150 countries.

Extending coverage of GSM and CDMA mobile networks to developing countries and other hard to serve areas, Alvarion offers complete and scalable mobile network solutions that feature a low cost of entry, local switching, and integrated VAS functionality. Alvarion mobile network solutions can also be used in rapid deployment situations as tactical networks and disaster recovery solutions for military and government applications, and they meet "two man lift" requirements.

Leading the WiMAX revolution, Alvarion has the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. Alvarion's products enable the delivery of business and residential broadband access, corporate VPNs, toll quality telephony, mobile base station feeding, hotspot coverage extension, community interconnection, public safety communications, and mobile voice and data. Alvarion works with several global OEM providers and more than 200 local partners to support its diverse global customer base in solving their last-mile challenges.

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

This press release contains 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 in ability 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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You may request Alvarion's future press releases or a complete Investor Kit by contacting Carmen Deville, Investor Relations: [e-mail] or +1-650.314.2653.