CamGSM, Cambodia's Largest Cellular Operator, Expands Deployment of Alvarion BWA Network; BWA Network Addresses Growing Cambodian Demand for Affordable Internet Access.

Business & High-Tech Editors

TEL-AVIV, Israel--(BUSINESS WIRE)--Aug. 27, 2002

Alvarion Ltd. (NASDAQ: ALVR), a leading provider of Broadband Wireless Access (BWA) solutions, today announced the receipt of a follow-on order from CamGSM Co. Ltd., which operates Cambodia's MobiTel cellular network, for additional fixed wireless equipment in the licensed 3.5 GHz frequency band.

Including this order, CamGSM has now purchased Alvarion equipment worth a total of more than $1 million. CamGSM is part of Millicom International S.A., which has mobile operations in over 20 countries.

With more than 250,000 cellular subscribers, MobiTel has a 70% share of Cambodia's cellular market. In March 2001, CamGSM leveraged its positioning and assets -including its customer base, marketing and support organization, and real estate in all regions of Cambodia - to launch Telesurf Wireless, a high-speed Internet access network. So far, Telesurf services are available in Phnom Penh, Cambodia's capital city, and the Siem Reap and Sihanoukville regions, and new subscribers are being added at the rate of more than 100 per month. Based on Telesurf Wireless's success, CamGSM is now expanding the network, with plans to cover four additional cities by the end of September. The additional regions that are going to be covered are Battambong, Poi pet, Kampong Cham and Kampot.

Commenting on the news, David Springs, General Manager of CamGSM, said, "Our BWA network provides a needed service for our customers, and is set to become an even more important revenue driver for MobiTel. As recently as two years ago, the cost of Internet access in Cambodia was $5 an hour, a price well beyond most budgets.

Using Alvarion's technology, we are bringing affordable Internet access to businesses and residences in all of Cambodia's largest cities. As a result, demand for Internet access is growing quickly. In the near future, we also plan to launch additional high-margin telecommunications services that our BWA network makes possible, such as VPN."

Tzvika Friedman, President and COO of Alvarion, added, "In developing regions like Cambodia, the benefits of wireless technology are even more obvious. With poor and expensive wireline infrastructure and difficult terrain, wireless is often the only option for bringing affordable Internet access, WAN connectivity and advanced telecommunications services to a population eager to connect with the rest of the world. Our technology is an ideal solution for cellular operators like CamGSM, who can reuse existing assets to launch a range of revenue-generating access services quickly and inexpensively, and can expand as justified by demand. We are delighted with MobiTel's success, and look forward to working with them as they expand throughout Cambodia."

About CamGSM

Established in 1996, CamGSM Company Ltd. operates a GSM 900 mobile network in Cambodia under the trade name of MobiTel. CamGSM is owned jointly by a leading Cambodian consortium, the Royal Group, and Millicom International S.A., a Luxembourg-based corporation with interests in cellular operators in 20 countries. MobiTel has approximately 250,000 subscribers in all provinces of Cambodia, who benefit from roaming agreements in over 100 countries around the world. MobiTel continues to expand the range of its service offerings, including the launch in March 2001, of its state-of-the-art Telesurf Wireless Internet access services.

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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