Alvarion and Intel Sign Strategic Agreement to Develop WiMAX-Certified Broadband Wireless Access Systems.

Business Editors/High-Tech Writers

TEL - AVIV, Israel--(BUSINESS WIRE)--July 9, 2003

Intel* 802.16a chip to fuel Alvarion's broadband last mile

alternative to DSL & cable

Alvarion Ltd. (NASDAQ: ALVR), the leading provider of wireless broadband solutions worldwide, today announced that it has signed a strategic agreement with Intel (NASDAQ: INTC) to work together to incorporate Intel's pioneering 802.16a chips into the company's coming line of next generation, interoperable Broadband Wireless Access (BWA) systems.

Intel announced its intention to develop IEEE 802.16a-compliant silicon on July 9th. Working in close cooperation, Alvarion is now developing next generation products based on Intel's chips with the intention of being one of the first to launch a WiMAX-Certified* system.

WiMAX promotes a new standard for last-mile wireless technologies designed to provide broadband connectivity to homes, businesses and Wi-Fi "HotSpots", competing with today's wireline DSL, cable, and T1 broadband access systems. Until now, the uptake of BWA technologies has been restrained by the lack of interoperability between the equipment of the industry's many manufacturers and the availability of standards-based, volume components. Led by the initiative of leading Wi-Fi and BWA component suppliers like Intel and Alvarion, interoperable WiMAX-Certified systems built upon standards-based silicon will help broadband wireless access to achieve its full mass-market potential as a price-competitive and flexible alternative to wired broadband solutions.

As leading proponents of WiMAX, both Intel and Alvarion have been active participants in the WiMAX Forum, a non-profit organization whose members are working to promote adoption of the IEEE 802.16a standard and to certify the interoperability of compliant equipment.

"The broadband wireless access market segment is currently fragmented due to a large number of non-interoperable proprietary solutions being offered by small equipment manufacturers," said Jim Johnson, vice president and general manager of Intel's Wireless Networking Group. "The market dynamics are expected to significantly change with Intel entering as a volume silicon supplier of standards-based 802.16a silicon and leading companies like Alvarion producing products based on our silicon."

"WiMAX will become the next major trend in wireless connectivity - a natural step to follow the WiFi (802.11) phenomenon -- and represents an easy and affordable way to provide broadband to homes, businesses and Hot Spots," said Zvi Slonimsky, CEO of Alvarion. "Alvarion recognizes these needs and has been a pioneer in championing the 802.16a standard for the past two years. We congratulate Intel on leading the revolution with standards-compliant silicon, which will be used as the basis of our Next Generation line of leading, WiMAX-Certified BWA products."

* Other brand and trademarks are property of their respective owners.

About Intel

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

About Alvarion

Alvarion is dedicated to delivering seamless wireless broadband networking infrastructure to carriers, ISPs and private network operators, in order to leverage their broadband opportunities into sustainable profits. Alvarion offers premier wireless broadband solutions for access in the last mile, backhauling connection to the backbone and private network connectivity. Featuring the industry's most extensive range of products and international support, Alvarion is a pioneering leader of the converged wireless broadband network. With over 1.5 million units deployed in 120 countries worldwide, Alvarion provides secure rich-media networks for business or residential Internet access, corporate VPNs, cellular base station feeding, community interconnection, public safety connectivity and extended Hotspots.

Having recently acquired InnoWave's wideband access portfolio and expertise, Alvarion provides a complete wireless solution that supports a wide range of frequency bands, customer profiles and service types.

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

Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web-sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission which this press release will be a part of.

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