BreezeCOM and Floware Announce: Implementation of Workforce Reductions; Release of 2nd Quarter 2001 Results on July 26, 2001.

Business Editors

TEL AVIV, Israel--(BUSINESS WIRE)--July 18, 2001

BreezeCOM Ltd. (NASDAQ: BRZE) and Floware Wireless Systems Ltd. (NASDAQ: FLRE) today announced that they are in the process of implementing a series of expense reductions, including a reduction in BreezeCOM's and Floware's respective workforces of approximately 15% each.

The workforce reduction will be made across all areas, and the total number of employees remaining after the reduction will be approximately 670. Continued weakness in the telecommunications market has resulted in a decline in revenues for the companies in the second quarter of 2001 compared to the first quarter of 2001, making it necessary to better align expenses with revenues. Workforce reductions and other measures are necessary to achieve this goal.

As previously reported, the companies will issue press releases with the companies' second quarter 2001 results on July 26, 2001. In conjunction with the earnings releases, BreezeCOM and Floware will host a joint conference call with Zvi Slonimsky, President and CEO of BreezeCOM, Amnon Yacoby, CEO of Floware, Tali Idan, Senior Vice President & CFO of Floware and Dafna Gruber, CFO of BreezeCOM, to discuss the quarterly results of each company, the expense reductions and guidance for future earnings.

The call will take place on July 26,2001 at 9:00 a.m. (EDT). To participate in the call, please dial [phone] (inside the US) or [phone] (outside the US) approximately ten minutes prior to the scheduled call start time. A replay of the conference call will be available from approximately 11:00 a.m. (EDT) on July 26 until 11:59 p.m. EDT on July 28. To access the replay, please dial [phone] (inside the US), or [phone] (outside the US) and enter authorization code 2725996.

About BreezeCOM

BreezeCOM is a leading provider of broadband wireless access (BWA) solutions used by service providers and enterprises. The Company's products provide a wireless alternative to wired access solutions, such as DSL and cable modems, and facilitate indoor and outdoor, as well as fixed and mobile wireless LAN connectivity. BreezeCOM products are based on a packet switching point-to-multipoint wireless platform, optimized for high-speed Internet and intranet access. Core technologies include spread spectrum radio, digital signal processing, modems, networking protocols and VLSI. For more information on BreezeCOM, please visit www.breezecom.com.

About Floware

Floware Wireless Systems Ltd. is a leading provider of point-to-multipoint fixed broadband wireless access (BWA) systems. These systems are used mainly by new carriers that connect business customers in the "last mile." Floware's WALKair system enables carriers to provide high-speed Internet access, as well as a wide range of voice and data services on the 3.5, 10.5, and 26 GHz radio frequency bands. Floware currently has more than 60 deployments worldwide. For more information, please visit Floware's website at www.floware.com.

About the Planned BreezeCOM-Floware Merger

On April 5, 2001, BreezeCOM and Floware entered into an agreement and plan of merger pursuant to which, upon satisfaction of certain conditions, Floware will merge into BreezeCOM. Both companies believe that the merger will create a leading global provider of point to multi-point solutions, a "one-stop BWA shop," offering cost-effective solutions for operators providing services to markets ranging from small and medium enterprises (SME) and multiple-tenant units (MTU) to small office/home office (SOHO) and residential markets.

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 BreezeCOM's and Floware'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 forward-looking statements contained in this release address the strategic business combination of BreezeCOM and Floware. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the risk that the BreezeCOM and Floware businesses will not be integrated successfully; costs related to the business combination; failure of BreezeCOM or Floware shareholders to approve the business combination; inability to obtain or meet conditions imposed for governmental approvals for the merger, 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; and the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers.

For other factors that could cause BreezeCOM's or Floware's results to vary from expectations, please see the "Risk Factors" section of BreezeCOM's [Form 20-F filed with the SEC on June 22, 2001, and Floware's Form 20-F filed with the SEC on July 2, 2001 as well as other filings made by BreezeCOM and Floware with the SEC.

In connection with the proposed merger between Floware and BreezeCOM., BreezeCOM has filed a Registration Statement on Form F-4 with the United States Securities and Exchange Commission, which has been declared effective on June 28, 2001. Investors and security holders are advised to read the Registration Statement on Form F-4, because it contains important information. Free copies of the Registration Statement on Form F-4 and BreezeCOM'S or Floware's other filings with the SEC may also be obtained from BreezeCOM or Floware, respectively. A copy of both companies' filings with the SEC may be inspected without charge at the Public Reference Room of the United States Securities and Exchange Commission at Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549, and copies of all or any part of such filings may be obtained from the Public Reference Room of the United States Securities and Exchange Commission upon the payment of the fees prescribed by the United States Securities and Exchange Commission.