Alvarion First to Demonstrate Working CPE Using Intel WiMAX Chip; BreezeMAX 3500 with Intel PRO/Wireless 5116 Showcased in a Lab Trial During WiMAX Forum's Face2Face Event in Malaga, Spain.

TEL AVIV, Israel -- Alvarion Ltd. (NASDAQ: ALVR), the world's leading provider of wireless broadband solutions and specialized mobile networks, today announced the first lab demonstration of a working WiMAX-ready CPE using the Intel(R) PRO/Wireless 5116 broadband interface. Alvarion has now successfully integrated the PRO/Wireless 5116 into its BreezeMAX(TM) 3500 CPE, the culmination of a strategic development effort with Intel, which began in mid-2003.

Major operators, systems integrators, and other WiMAX Forum members participating in the event had an opportunity to observe the live demonstration of the system at the Cetecom laboratory during the organization's Face2Face in Malaga, Spain last week. Cetecom is the first lab selected by the WiMAX Forum to perform certification testing of WiMAX equipment.

Iberbanda, a Spanish service provider that has already commercially deployed BreezeMAX in several regions of the country, supplied a network connection as part of the demonstration.

"Continuing our leadership of the broadband wireless access market, we are now the first equipment vendor to demonstrate a working WiMAX-ready CPE using the Intel(R) PRO/Wireless 5116 broadband interface," said Zvi Slonimsky, CEO of Alvarion. "With the product slated for commercial release in the second half of 2005, this milestone represents a significant step forward for both Alvarion and the industry as we move to widespread adoption of WiMAX standard products."

Intel(R) PRO/Wireless 5116 broadband interface is a system-on-chip that supports WiMAX last-mile connectivity to homes and businesses. Leveraging the ratified IEEE 802.16-2004 specification, the Intel chip and Alvarion system provide high-throughput broadband connections over long distances. WiMAX can be used for a number of applications, primarily "last mile" broadband connections.

"We have worked with Alvarion since our early days of focusing on WiMAX," said Scott Richardson, General Manager Broadband Wireless, Intel. "The incorporation of our Intel(R) PRO/Wireless 5116 broadband interface into their BreezeMAX CPE reflects our mutual commitment to WiMAX. We will continue to promote this technology together, making WiMAX a mass market phenomenon," he added.

Since its launch in June 2004, the WiMAX-ready BreezeMAX 3500 is operational across the European continent with operators such as Altitude Telecom in France and Iberbanda in Spain, and with additional carriers around the world.

"Our business model is focused on providing broadband to rural and urban areas that are currently not served and have difficulty getting DSL," said Carlos Morell, CEO of Iberbanda. "Until now, we have been concentrating our efforts on delivering critical access to large enterprises--a strategy which has proved to be highly successful. With WiMAX, we can achieve the proper economics to serve smaller-business customers and residential users, and BreezeMAX is the key to rolling out broadband services to these types of users."

BreezeMAX(TM) is an OFDM platform with advanced NLOS functionality designed for operators to offer broadband IP-based data and voice services, allowing for the easy, cost-effective evolution of networks to WiMAX standard solutions. Its carrier-class design supports high quality of service (QoS) and broadband speeds to enable carriers to offer multi-services to thousands of subscribers in a single cell.

About Alvarion

With more than 2 million units deployed in 130 countries, Alvarion is the worldwide leader in wireless broadband, providing systems to carriers, ISPs and private network operators, and also in extending coverage of GSM and CDMA mobile networks to developing countries and other hard to serve areas.

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.

As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for more than 10 years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience in deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum(TM) is focused on increasing the widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to mobile WiMAX solutions.

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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