Alvarion Forms OEM Partnership With Siemens' Joint Venture, Beijing International Switching System Corporation -BISC-.

Business Editors

TEL AVIV, Israel--(BUSINESS WIRE)--Oct. 22, 2002

Partnership Extends Alvarion's Positioning In The Emerging Chinese

BWA Marketplace

Alvarion Ltd. (NASDAQ:ALVR), a leading provider of Broadband Wireless Access (BWA) solutions, today announced that it has formed an OEM partnership with Siemens' joint venture Beijing International Switching System Corporation (BISC), a powerful Chinese telecommunications equipment provider owned jointly by SIEMENS AG (one of Alvarion's strategic OEM partners) and Chinese enterprises.

BISC will market Alvarion's advanced fixed wireless solutions in the 26GHz and 3.5GHz bands to Chinese operators. These operators are taking advantage of exciting new opportunities created through the progress of China's frequency allocation process.

With low initial costs, a "pay as you grow" approach, and extensive service reach, Alvarion's systems are a cost-effective and flexible way for operators to quickly build new infrastructure and to launch value-added IP services. Based on advanced wireless technology, Alvarion solutions are ideal for areas such as China that have insufficient wireline infrastructure and difficult terrain. Alvarion's mature, full-featured products support high-quality voice services together with the high-speed data services (VPNs, VLANs, VoIP, and others) demanded by business customers.

Norbert Muhrer, President and CEO of BISC, said, "We are eager to join with Alvarion to address the new telecom opportunities emerging throughout China. BWA solutions are ideal for the newly emerged operators following the split of China Telecom, whose success depends on their ability to quickly set up quality services towards mainly corporate customers and independently manage their own telecom infrastructure. With thousands of network deployments, Alvarion's solution range is by far the most comprehensive on the market, and will allow us to give operators unmatched strategic flexibility.

"We expect their new 26GHZ WALKair 3000 to beat the current competition in the Chinese market. We see the OEM partnership with Alvarion as an important step forward and are keen to bring our partnership to success."

Zvi Slonimsky, CEO of Alvarion, added, "This OEM agreement proves again the value of our long-standing partnership with Siemens, which has been so important to us throughout the years. We are pleased to team up with Siemens' joint venture BISC to extend our presence in this expanding high-potential market. Our advanced solutions are ideal for the Chinese market. They will allow operators to quickly establish a new class of telecom services that satisfy China's increasingly sophisticated telecommunications demands, and to build a solid revenue base."

About BISC (Beijing International Switching System Corporation)

Beijing International Switching System Corporation Limited (BISC) is a high-tech joint venture between SIEMENS AG and Chinese enterprises. The company focuses on the manufacturing and marketing of EWSD switching systems and data network solutions, broadband access product (Xpresslink), Next Generation Network solutions (SURPASS) for convergence of voice and data services, IP Routing and system integration solutions for the fast developing China telecommunications market. BISC had been formally recognized as one of the 500 Largest Industry Enterprises in China, Top 100 Enterprises of Electronic Industry, and Top Ten Foreign Invested Industrial Enterprises of the Beijing Municipality. For more information about BISC visit http://www.bisc.com.cn

About Alvarion

Alvarion is a powerhouse of point-to-multipoint broadband wireless access (BWA) solutions for telecom carriers, service providers, and Enterprises worldwide. Alvarion's systems are used to provide Internet access and voice and data services for subscribers in the last mile, as well as for cellular network feeding, building-to-building connectivity, and wireless local area networks (LANs).

Alvarion, which was formed by the merger of BreezeCOM and Floware, offers the broadest range of BWA solutions by market segment and frequency band. Its solutions are designed to address all carriers' and service providers' business models. With the combined market experience of its founding companies, a strong customer base, diversified distribution channels and field-proven deployments, Alvarion is the leading BWA pure-play provider for all types of end-users, 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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