BreezeCOM and Floware Announce Successful Integration of their Base Stations.

Business Editors

TEL-AVIV and OR YEHUDA, Israel--(BUSINESS WIRE)--June 26, 2001

BreezeCOM Ltd. (NASDAQ: BRZE) and Floware Wireless Systems Ltd. (NASDAQ: FLRE), two leaders in the field of Broadband Wireless Access (BWA), today announced that an R&D taskforce consisting of engineers from both companies has successfully created a working laboratory prototype of an integrated base station. The technology will enable telecommunication operators to communicate from a single base station with both BreezeCOM's and Floware's customer premises equipment (CPE). Commercial availability of the integrated base station is planned for early 2002.

The integrated base station consists of one or more Floware radio units in the 3.5GHz frequency band. Each radio unit is capable of communicating with the CPEs of both companies - BreezeCOM's BreezeAccess unit and Floware's WALKair unit. This will enable operators to serve a variety of subscribers from each base station, from SME (small and medium enterprises) and MTU (multi-tenant units) to SOHO (small office / home office) and residential subscribers. In addition, Floware's existing customer operators already utilizing WALKair base stations mainly for SME customers will also be able to connect SOHO and residential subscribers by offering them the cost-effective BreezeAccess CPE unit.

Commenting on the news, BreezeCOM's President and CEO, Zvi Slonimski, said, "We are proud that the joint taskforce, launched just two months ago, has already achieved its first major milestone. This is the initial fruit of our ongoing efforts to make the merger a success. It strengthens our belief that the agreed-upon merger will create the industry's leading BWA pure-player with a strong R&D team, a wide range of leading technologies and a large variety of distribution channels." Floware's CEO, Amnon Yacoby, added, "The integrated base station answers the expressed need of many of our customer operators to be able to address a variety of subscribers from a single base station. The operators will be able to increase the revenue potential of their network by addressing a larger subscriber base. We continue to work on a comprehensive development plan that will result not only in integration of BreezeCOM and Floware products, but also in the development of new products that will enhance the operators' return on investment."

About BreezeCOM

BreezeCOM is the leading provider of Broadband Wireless Access (BWA) solutions used by service providers and enterprises. Its 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, 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, 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 the 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; as well as 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 F-1 relating to BreezeCOM's secondary offering filed with the SEC on July 26, 2000, and Floware's Form F-1 filed with the SEC relating to Floware's initial public offering on August 1, 2000.

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. 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 the such filings may be obtained from the Public Reference Section of the United States Securities and Exchange Commission upon the payment of the fees prescribed by the United States Securities and Exchange Commission.